Tag: EC Future of Work

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6 startup founders gaze into a future-of-work crystal ball

The excitement around remote work reached fever pitch during the pandemic, when most people with an office job were forced to work from home. This opened up conversations about what the future of work looks like, with a lot of attention paid to remote and hybrid models as well as how employees can maintain an acceptable work-life balance.

But as the world returns to “normal,” what does the future of work look like from where we are today? To find out, we spoke with six founders who are working in relevant sectors.

The founders shared a broad set of opinions on what we’ve been seeing over the past couple of years, tying that to visions of what they expect for the future. They had a lot of thoughts about working from home, returning to the office, and finding hybrid solutions that fall somewhere between the two.

The remote work startups that will last aren’t actually remote work startups

“Somewhere around 2012, it was peak Google campus. If you worked for any of the tech companies, you basically lived on campus,” said Phil Libin, CEO of Mmhmm. “I think during the pandemic, it swung back in the other direction, and now there’s not even a place to go and you’re on your own for everything.”

Many of the founders we spoke with recognize that there needs to be a balance, despite the various ways that work gets done. “For us to demand 100% office work would have been madness, so we chose to stay competitive and make sure talented people aspired to work with us,” said Barnaby Lashbrooke, founder and CEO of Time etc.

Managers used to managing in-person have had to change how they evaluate employees and how they keep everyone engaged; it’s no longer possible to rely on vibes to measure employee happiness and success. You have to change how you track productivity when your workforce is distributed.

For investors, future of work isn’t only about HR

“I think the biggest issue is team culture. How does your team do the work together? How do you encourage them to spend time together doing the work, not just trading back and forth and being really slow? How does management get a sense for how the work is being done together?” said Alexander Embiricos, CEO of Multi. “I think that’s actually more of a problem than managers realize, because they just can’t feel it.”

Read on to find out what companies in the space are doing to help organizations maintain and track distributed workforces, how the new paradigm of working remotely affects employees and training, and what they think is most necessary at the moment.

We spoke with:

Barnaby Lashbrooke, founder and CEO, Time etc.

The pandemic made thinking about the “future of work” a lot more urgent. What were the biggest things you’ve seen shift in the past three years? Did any of those shifts surprise you?

Being forced to go remote during the pandemic was a curveball, not a hospital pass. Our thinking, and what we did after the pandemic, was heavily influenced by the workforce. As life started to go back to some kind of normal, we started interviewing more and more candidates who were leaving their workplaces because of a lack of flexible working. Many told us they were actively only speaking to potential employers who offered it.

For us to demand 100% office work would have been madness, so we chose to stay competitive and make sure talented people aspired to work with us. The job-seeker shift in attitude has largely driven our policies on work.

What are the biggest unsolved problems you see in the future of work space right now?

This might not be the answer you’re expecting, but it’s actually reliable, affordable internet access. Yes, it’s 2023 — the year of AI going mainstream — but helping employees get access to superfast broadband that doesn’t drop out during video calls is still a major challenge for our team. Even if we wanted to fund better access, we often can’t.

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Ask Sophie: Any tips for F-1 student visa approval amid the rising denial rate?

Sophie Alcorn Contributor
Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.
More posts by this contributor

Here’s another edition of “Ask Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

TechCrunch+ members receive access to weekly “Ask Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.

Dear Sophie,

I was accepted into a prestigious robotics engineering master’s program in the U.S. that begins in the fall! However, I heard the denial rate for F-1 student visas is increasing. Why? 

How can I increase my chances of being approved?

— Soon-to-Be Student

Dear Soon-to-Be,

Thank you for studying in the States! The U.S. needs and appreciates international students like you. This visa adjudication change will cost billions to the U.S. economy, and it’s a step backward with tech job vacancies growing and the swift rise of several emerging technologies. The United States is in critical need of international students like yourself to support our security and economy to remain competitive throughout this century.

I’ve got lots of tips and strategies for you, but before I dive in, some good news: Earlier this week, the U.S. Citizenship and Immigration Services (USCIS) held an additional random selection round — or lottery — among the H-1B registrations that were submitted but not selected in the March lottery to meet the annual cap of 85,000 H-1B visas. The USCIS has notified the additional 77,609 registrations that were selected. (The USCIS selected 110,791 registrations in March.)

The second selection round could indicate that the number of cap-subject H-1B applications that the USCIS expected to receive by the June 30 deadline fell short of estimates, or, probably less likely, that the agency denied H-1B applications at a higher rate than expected. Decreased petitions would have likely stemmed from a combination of some continuing layoffs as well as the same candidates being entered into the lottery multiple times by separate companies, a change that the American Immigration Lawyers Association has proposed to DHS, which recently issued a brief response.

The F-1 is a great way to learn and grow in the United States. Studying in the U.S. and completing your degree also offers the opportunity to work in your field through F-1 OPT (optional practical training) and STEM OPT, the two-year extension of OPT. Last month, robotics engineering and seven other fields of study, including institutional research and composite materials technology, were added to the STEM Designated Degree Program List, now making you eligible for STEM OPT!

Now, about those declining F-1 approval rates — you’re correct: According to the Cato Institute, the denial rate for F-1 student visas jumped to an “unprecedented” 35% in 2022, compared to the 14% denial rate in all other nonimmigrant (temporary) visa categories, which include the H-1B specialty occupation visa and the O-1A extraordinary ability visa. Before 2021, F-1 student applications had a similar denial rate as other nonimmigrant visa applications. However, in 2021 and 2022, F-1 visas were denied at double the rate of all other nonimmigrant visas.

Students can apply for an F-1 visa only after they have been accepted into an approved university program, so “[t]his means that the U.S. Department of State turned down 220,676 students who would have likely paid roughly $30,000 per year or $6.6 billion per year in tuition and living expenses,” writes David Bier, the author of the Cato Institute report. “Over four years, that number rises to $26.4 billion in lost economic benefits to the United States.”

Let me dive into your questions, starting with the why.

Why is the F-1 denial rate increasing?

The State Department doesn’t specify the reasons for denying an F-1 visa. However, most consular officers deny nonimmigrant visas when you fail to prove in your visa interview that you have nonimmigrant intent, which means you only intend to remain in the U.S. temporarily and eventually plan to return to your home country.

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Ask Sophie: How realistic are my chances of hiring H-1B candidates at my startup?

Sophie Alcorn Contributor
Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.
More posts by this contributor

Here’s another edition of “Ask Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

TechCrunch+ members receive access to weekly “Ask Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.

Dear Sophie,

With more than 750,000 H-1B registrations this year, is it realistic for my early-stage startup to consider hiring candidates who are seeking them?

— Skeptical Startup

Dear Skeptical,

I know, I know: The numbers are intense.

I understand your skepticism given that the odds of companies getting their H-1B visa candidates selected in the annual lottery process have been on the decline as demand among employers for H-1B visas continues to rise. Despite some well-publicized layoffs, many employers continue to hire, plus the CHIPS Act of 2022 and the Infrastructure Investment and Jobs Act of 2021 are spurring more job creation.

For this year’s H-1B lottery, the U.S. Citizenship and Immigration Services (USCIS) received a whopping 758,994 eligible registrations, and for the first time, more than half — nearly 408,900 — were H-1B candidates who had more than one employer that registered them in the lottery. (How does the annual lottery work? Check out my podcast for an overview.)

Again this year, with no second lottery on the horizon, these are important questions to ask.

Still, I believe it’s still worth it to register employees in the annual H-1B lottery as part of a multiprong strategy to attract and retain international talent in the United States, as the six-year, dual-intent status is so valuable to companies and the team members who hold it.

That remains true even if the USCIS implements a proposal to increase the H-1B lottery registration fee to $215, up from the recent $10 fee. Although it’s a large increase, the additional $205 per registration likely won’t be a limiting factor for even early-stage startups considering the process.

The chances of having an H-1B candidate picked in the lottery has dropped dramatically, particularly since 2020, when the USCIS implemented its online H-1B lottery registration system. Before 2020, companies that wanted to enter an employee or prospective employee in the H-1B lottery had to submit a completed H-1B application.

This time-intensive, costly, and risky process often meant that participating in the H-1B lottery was unrealistic for most startups. Additionally, companies had to be ready to front the full filing fees at the time of the lottery, not knowing how many people would be selected and how many checks would be cashed. Now it’s easy to register candidates, and companies have discretion about whether to proceed with the full petition after knowing whether somebody was selected.

Raising the annual cap of 85,000 H-1B visas (65,000 for those with bachelor’s degrees and 20,000 for those with master’s or higher degrees) requires congressional approval and remains highly unlikely. However, the USCIS could look at alternative administrative changes, such as limiting each H-1B candidate to one entry in the H-1B lottery regardless if that individual has multiple job offers, in order to provide a more level playing field.

This year’s H-1B lottery

While getting job offers from multiple companies that register an H-1B candidate in the lottery is not against the law, the USCIS indicated it would closely scrutinize H-1B beneficiaries, companies, and applications for potential abuses and fraud.

After this year’s lottery, the USCIS stated:

The large number of eligible registrations for beneficiaries with multiple eligible registrations — much larger than in previous years — has raised serious concerns that some may have tried to gain an unfair advantage by working together to submit multiple registrations on behalf of the same beneficiary. This may have unfairly increased their chances of selection.

If any of your early-stage employees are on F-1 Optional Practical Training (OPT) or STEM OPT, the two-year extension for students who graduated in a STEM field, make sure to enter them in the H-1B lottery every March until they are selected before they graduate and while they are maintaining OPT and STEM OPT status. You can look at other visa alternatives as well.

Visas for citizens of specific countries

You have other options if your startup’s employees or prospective employees aren’t selected in the H-1B lottery. There are a handful of work visas aimed at individuals from certain countries. If any of your employees or prospective employees are from Australia, Canada, Chile, Mexico, or Singapore, these are great options to consider:

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Ask Sophie: Any guidance for changing jobs while on an H-1B?

Sophie Alcorn Contributor
Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.
More posts by this contributor

Here’s another edition of “Ask Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

TechCrunch+ members receive access to weekly “Ask Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.

Dear Sophie,

I’ve been on an H-1B visa with my current employer for about two years, and I want to find a more challenging position with another company.

At a time when more companies are doing layoffs, I feel like I’m at a disadvantage in the job market compared to a few years ago.

Can you please guide me on changing jobs, transferring an H-1B and getting support for my green card?

— Hopeful H-1B Holder

Dear Hopeful,

Congrats on taking the first step toward reaching your goals. Appreciate you reaching out to me for guidance — I’ve got you!

The good news is that many companies are hiring tech talent. Layoffs in the tech sector — mostly by the Big Tech firms — have grabbed the news headlines since last year. But I’ve found that many early-stage startups successfully conserved cash and are now hiring.

Since you already went through the lottery process, you won’t need to go through it again for an H-1B transfer. Phew!

In addition, other sectors such as healthcare, professional and business services, government, and hospitality have shown strong job growth and are hiring tech talent. What’s more, federal legislation, such as the CHIPS and Science Act of 2022 and the Infrastructure Investment and Jobs Act of 2021, will lead to increased job creation over the next few years.

Become familiar with your ideal visa and green card route, particularly when pursuing a position at an early-stage startup. Often early-stage founders and ops leaders have limited immigration experience, so knowing how to explain the process is invaluable to pitching yourself.

Tips for managing your H-1B transfer

You’ve already surpassed one of the biggest challenges most people face — being selected for an H-1B visa through the annual H-1B lottery. In the past few years, the chances of being selected in the lottery have decreased significantly. Since you already went through the lottery process, you won’t need to go through it again for an H-1B transfer. Phew!

Your job now is to figure out what it is you want to do. What’s your dream job? Can it qualify as a specialty occupation for H-1B purposes? If it’s not the next natural step on a typical career progression ladder, can you identify the next role that would be a great steppingstone?

Sophie Alcorn headshot

Image Credits: Sophie Alcorn

Once you’ve identified your next step, then you need to find an employer willing to transfer your H-1B. Expand your network and tap into your existing network for job leads. Ask prospective employers early on in the job interview process whether they’re willing to provide immigration support.

If they aren’t — or if they hesitate — move on. International talent remains highly sought after by employers. According to the 2023 Immigration Trends Report published by Envoy Global, 87% of employers are recruiting and hiring foreign national employees in the U.S.

For an H-1B, the employer is responsible for paying the costs. You can let prospective employers know that an H-1B specialty occupation visa transfer for a startup can typically be accomplished in a month or so, and usually for less than $10,000, including legal and filing fees, which is much less than the cost of a recruiter. The process can take as little as four to six weeks from offer to start date.

It’s definitely recommended that all companies work with an experienced immigration attorney to put together your work visa petition. Startups or companies that have never before sponsored an employer or prospective employee for an H-1B must first get their Federal Employer Identification Number (FEIN) verified by the U.S. Department of Labor’s Office of Foreign Labor Certification, which typically takes about a week.

Ask Sophie: Any guidance for changing jobs while on an H-1B? by Walter Thompson originally published on TechCrunch

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Create context and provide examples to lower AI adoption barriers

Jeremiah Stone Contributor
Jeremiah Stone is CTO at SnapLogic.

Every company needs to be thinking about how to make artificial intelligence (AI) a seamless extension of its team. How often has an employee said, “I wish there were more hours in the day to get all my work done,” or “This is too much work for just one person.”

AI has the potential to lighten our workload and let us execute on tasks in a less fragmented way, but fostering an AI-friendly company culture is easier said than done.

It’s critical that companies take steps to quell any trepidation around AI while also providing tangible examples of its benefits.

In fact, according to a survey conducted by SnapLogic, 39% of respondents said they believe it will be difficult to get everyone in their organization on board with AI.

There are several barriers to AI adoption, but it mostly comes down to a lack of context and education on the topic. By heeding the following advice, companies have the best chance at integrating AI technologies into their company culture with little disruption — and big benefits.

Demystify AI to support change management

Most humans learn best by metaphor and example. It can be tricky to paint a picture of how AI will impact the workplace since we have so few prior examples. Additionally, some people worry that AI might make their role redundant if it can do their job faster or better than they can.

Despite these concerns and a general lack of context, people for the most part feel optimistic when it comes to AI: In our survey, nearly two-thirds liked the idea of using it in their current role. They believe AI has the potential to save them time (54%), increase productivity (46%), and reduce risk and errors in their work (37%).

Create context and provide examples to lower AI adoption barriers by Walter Thompson originally published on TechCrunch

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AI is not a panacea for software development

Brett Stevens Contributor
Software.com co-founder Brett Stevens was previously part of the product marketing team at Delphix, a API-first data platform for the multi-cloud. He holds a Bachelor of Science in Mechanical Engineering from Brown University and currently resides in Brooklyn.
Geoff Stevens Contributor
Software.com co-founder Geoff Stevens previously worked with the investment team at Volition Capital, a growth equity firm investing in tech-enabled companies. He holds a Bachelor of Arts in Applied Mathematics from Harvard College and currently resides in Seattle.

How much more productive are developers using AI coding tools? Recently, there has been a lot of speculation that AI makes developers 2x, 3x, or even 5x more productive. One report predicts a tenfold increase in developer productivity by 2030.

The irony, however, is that the engineering community has, for the most part, not been able to agree upon a universal way to measure engineering productivity. Some have even rejected the idea altogether, arguing that most metrics are flawed or imperfect. Most of the claims around AI improving productivity today are qualitative — based on surveys and anecdotes, and not on quantitative data.

How can we make judgments about AI without first agreeing on how to measure productivity? If we learned anything from the remote work experiment, it’s that we floundered without data to inform our decisions — shifting back and forth between office, remote, and hybrid strategies based on dogma and ideology instead of data and measurement.

We’re on a path to repeat ourselves with AI. To move forward, we must first understand and quantify its impact.

The risk of falling behind

The current hype around AI may give some of us reason to pause — due to the unknown impact to quality, the potential risk of plagiarism and other factors. The most cautious companies have entered a holding pattern, waiting to see how it all plays out.

For tech-enabled businesses, however, the risk of falling behind is existential. AI is a double accelerant, impacting both what and how companies build. Companies that invest in AI today have the potential to double dip by bringing to market not only new AI-powered products, but also products to market faster and more cheaply.

Most companies have been focused on the what, but AI could be the driver for the how, creating the 10x or even 100x engineering team. Companies that figure out how to quickly cross the chasm — by optimizing AI tools in the most efficient and impactful way — and reach the plateau of productivity faster will benefit from a head start for years to come. The risk of doing nothing is too high.

Understanding the trade-offs

To someone with a hammer, everything looks like a nail. So, too, with AI.

According to a recent GitHub report, the top benefit of AI coding tools cited by developers was improving their coding language skills. Another key benefit is automating repetitive tasks, like writing boilerplate code. A recent experiment by Codecov showed that ChatGPT performs well at writing simple tests for trivial functions and relatively straightforward code paths.

AI is not a panacea for software development by Walter Thompson originally published on TechCrunch

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Ask Sophie: How do we relocate Ukrainian and Russian team members to the U.S.?

Sophie Alcorn Contributor
Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.
More posts by this contributor

Here’s another edition of “Ask Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

TechCrunch+ members receive access to weekly “Ask Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.

Dear Sophie,

Our startup employs about 30 people globally through a combination of direct and co-employment based on their country.

Over the last year and a half or so, we helped several team members relocate from Ukraine and Russia to various non-Schengen countries such as Georgia, Taiwan, Thailand, Turkey, and Uzbekistan.

We realize it’s more expensive if we bring these employees to the U.S., but our startup will be more successful. How do we bring them here?

— Meaningful Money-making

Dear Meaningful,

Many companies have helped make a meaningful difference in people’s lives, supporting talented team members and their families from countries such as Ukraine and Russia to relocate to safety. Thank you for now considering how to help certain individuals relocate to the U.S. May all humans enjoy peace, prosperity, and freedom.

Many employers are continuing to work with the Ukrainian and Russian professionals who have left their homes since Russia invaded Ukraine in February 2022.

Of the 8 million people who have left Ukraine, more than 270,000 have been admitted to the United States, most of them under the Uniting for Ukraine program, which provides a temporary stay in the United States and a work permit.

At least 500,000 and as many as 1 million people have left Russia and more than 65,000 Russians have sought entry to the U.S. between February 2022 and April 2023. According to Russian government figures, about 100,000 IT specialists (about 10 percent of the tech workforce) left Russia, which is likely underestimated.

Before I dive into options for bringing Ukrainian and Russian employees to the United States, I recommend you work with an immigration attorney to devise a strategy for each employee you’re seeking to sponsor based on her/his education, skills, qualifications, location, and situation. Your company has several options for bringing your Ukrainian and Russian employees to live and work in the United States.

Uniting for Ukraine

The Uniting for Ukraine program, which began last year, provides a way for Ukrainian citizens and their immediate family members to come to the United States to stay for two years under temporary parole status. Individuals participating in the program must have a U.S.-based supporter or multiple supporters—an individual, organization, or business—who agrees to financially support their stay.

The supporter must fill out Form I-134A (Online Request to be a Supporter and Declaration of Financial Support) and submit it to U.S. Citizenship and Immigration Services (USCIS). The program includes the option for a Employment Authorization Document (EAD), otherwise known as a work permit.

Right now, parole under the Uniting for Ukraine program cannot be extended beyond two years, but that may change. Your company could consider sponsoring employees on parole for work visas or green cards I explain in more detail below.

Ask Sophie: How do we relocate Ukrainian and Russian team members to the U.S.? by Walter Thompson originally published on TechCrunch

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SignalFire’s State of Talent report 2023

Dr. Heather Doshay Contributor
Dr. Heather Doshay is partner, People + Talent at early-stage venture firm SignalFire, where she leads recruiting programs for the portfolio and advises founders on applying the firm's Beacon AI for hiring. She's spent 15+ years as a people and talent executive at Webflow, RainforestQA, and Hired.

The era of tech giants overstaffing and overpaying has ended, at least for now. But talent is flooding the market, and those still employed have been left to shoulder all the work—there’s a huge opportunity for savvy recruiters to scoop up top performers.

Today’s job market is a confusing paradox. While unemployment is at a record low and there’s a labor shortage in healthcare and hospitality, tech has seen nonstop layoffs that hit 166,044 workers in Q1 2023 alone. That’s more than all of 2022’s then-record 161,411 tech layoffs.

What’s most unprecedented is that these layoffs are hitting software engineers, including top talent at FAANG companies that were previously considered untouchable. This is in sharp contrast to the 2008 recession, when the U.S. high-tech industry gained about 77,000 jobs in Q4, most in software development, despite the overall U.S. labor market losing 38,000 jobs.

327,475 people in tech laid off from Q1 2022 to Q2 2023

327,475 people in tech were laid off from Q1 2022 to Q2 2023. Image: SignalFire

The reversal of fortunes for engineers is particularly brutal coming off of 2021’s startup fundraising boom and relentless optimism. Companies preempted growth with hiring sprees far ahead of their metrics in hopes of continued growth.

But by the summer of 2022, the Great Resignation and “quiet quitting” gave way to mass layoffs by four of the big five in tech—Meta (Facebook), Apple, Amazon, Netflix, and Alphabet (Google), known as FAANG. All but Apple made sizable cuts, including deeper cuts for software developers.

Executive Summary

SignalFire’s State of Talent Report explores macro conditions and top-talent movement trends in tech to identify practical strategies for winning in the current hiring market. Top findings include:

    • Hiring power is shifting to startups as post-pandemic layoffs and budget cuts cause a “Great Restart” of compensation norms at big tech companies that can no longer overpay to win the best talent
    • An unprecedented 166,000 tech layoffs happened in Q1 2023 – more than in all of 2022 – and included formerly untouchable software engineers.
    • Big tech talent has flooded the market—69% of FAANG engineers who were laid off or left after May 15, 2022 still listed no current job as of March 15, 2023.
    • 28% of rehired FAANG engineers played musical chairs and switched to another tech giant, while 6% went to early-stage startups – an 82% increase over 2021
    • Startups can capitalize on this power shift by recruiting passive talent who have survived big tech layoffs—they’re often loyal top performers who are overworked after teammates were cut.
    • SignalFire can help startups find and hire top passive talent with its Beacon AI engine and recruiting team.

Mass layoffs and the “Great Restart”

To explain the tech talent market’s sudden implosion, here’s the timeline that led to an imbalance in talent supply and demand.

Tech has seen nonstop layoffs that hit 166,044 workers in Q1 2023 alone. That’s more than all of 2022’s then-record 161,411 tech layoffs.

  • The 2020 pandemic accelerated the move of commerce, collaboration, and entertainment online, causing a boom for many tech companies through 2021.
  • Hiring accelerated in 2021, creating a candidate-centric market that, coupled with the Great Resignation, drove many companies to use above-market compensation to attract and retain top talent.
  • Entering 2022, the cost to do business in general steadily began to rise with inflation, coupled with a return to in-person activities, disrupting demand for online services that had fueled pandemic tech growth.
  • Mid-year 2022, tech valuations and cryptocurrency prices recalibrated down.
  • Ambitious hiring-ahead had been a strategic lever to hit ambitious revenue targets, and as those targets were missed, both public and private companies adjusted to decrease burn and extend their runway.

The result: companies chose to equalize the decreased demand for their products and services by reducing their workforce. Notably, top engineers were not spared.

2020s tech layoff timeline

2020s tech layoff timeline, March 2020 – March 2023. Image: SignalFire

In this report, we share a data-based analysis of the shifting talent landscape starting May 15, 2022 — when some of the most significant changes were starting to take place —through March 15, 2023, which captures the bulk of relevant data but is not inclusive of all activity to date.

We demystify the talent market on behalf of top engineers, as well as the companies where that top talent might find a new home. We specifically looked at engineers who are in the top 25% relative to their peers—as calculated by Signalfire’s Beacon AI data platform, which leverages a proprietary machine learning algorithm we developed to gauge the quality of engineers—both individually and collectively at their companies.

We used a cohort data approach encompassing the Bureau of Labor Statistics and Layoffs.fyi to capture a point in time when tech layoffs peaked, sticking with the data long enough to understand outcomes for that impacted cohort. More on our methodology can be found in the appendix at the end of the report.

How we got here

The Bureau of Labor Statistics reported that the number of U.S. workers who quit their jobs during the Great Resignation between January and December 2021 made it a record-breaking year, with nearly 47.8 million total workers quitting their jobs. That is twice as many as left or were laid off during the Great Recession of 2009 and 2010.

Layoffs in tech - data compiled by SignalFire based on Layoffs.fyi

Layoffs in tech: data compiled by SignalFire based on Layoffs.fyi. Image:SignalFire

Over the years leading up to the implosion, fundraising grew in both velocity and size. Pitchbook NVCA Venture Monitor highlights that 2021 saw a peak in the number of deals closed (18,521) and dollars invested ($344.7 billion) followed by a substantial drop in 2022, with four consecutive quarters of declining deal counts. The conjecture is that investor demand went down in both early- and late-stage investments.

To avoid a down round—or perhaps due to a lack of new funding available altogether—companies began to focus on extending their runway by reducing burn. Headcount and salaries are almost always the biggest line item on a company budget. Many companies had used capital to hire in advance of expected revenue growth and then missed revenue targets. They were suddenly strapped with unsustainable burn due to payroll increases.

Cue layoffs.

As the chart below highlights, layoffs in tech nearly doubled in 2022 compared with 2020; and after just the first quarter of 2023, this is already another record-breaking year for layoffs.

FAANG headcount growth collapsed since 2021

FAANG headcount growth collapsed since 2021. Image: SignalFire

FAANGs out

For the past decade, FAANG companies were seen as the safe bet for job seekers, known for rich compensation packages and high job security. Starting in the summer of 2022, a new reality set in with hiring freezes and layoffs.

SignalFire’s State of Talent report 2023 by Walter Thompson originally published on TechCrunch

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Ask Sophie: Do I need 2 visas to work at 2 different startups?

Sophie Alcorn Contributor
Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.
More posts by this contributor

Here’s another edition of “Ask Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

TechCrunch+ members receive access to weekly “Ask Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.

Dear Sophie,

I’m in the U.S. on an H-1B visa, but I want to leave my current job and pursue a couple of startup ideas: One with a few friends, and the other on my own.

Do I need to get two separate visas to work at both companies at the same time? Can I transfer my H-1B to one or both companies?

— Energetic Entrepreneur

Dear Energetic,

Wow! Founding two startups and bringing them both to fruition will certainly keep you busy! I admire your drive and applaud you for your gusto and determination!

Let’s first provide some context on work visas versus work permits, and then offer up a few suggestions and alternatives.

Work visas vs. work permits

A work visa, such as the H-1B specialty occupation visa and the O-1A extraordinary ability visa, enables its holder to temporarily live in the U.S. and work only in the engagements included on the original visa petition, Form I-129.

Certain categories of people, such as F-1 students, some dependent spouses of work visa holders, and people pursuing green cards, may be eligible to apply for a work permit that is not tied to any specific employer. (Examples include F-1 OPT, F-1 STEM OPT, E-2 and L-1 spouses, and individuals who have been approved for a green card and have a pending Form I-485, the Application to Register Permanent Residence or Adjust Status.) Also known as an Employment Authorization Document (EAD), a work permit provides proof of authorization to work in the U.S. and enables its holder to get a job or jobs.

Compared to a work visa, an EAD offers wide flexibility to entrepreneurs and founders. That’s one reason we often ask our married entrepreneur clients whether their spouse is eligible for a work visa that offers an EAD to a dependent spouse.

H-1B transfer and concurrent H-1Bs

You can transfer your H-1B from your current employer to another employer for part-time or full-time work. You can also hold two or more concurrent H-1Bs from different employers at the same time.

Although an H-1B visa petition is tied to a specific job with a specific employer, there are no limits on the number of H-1B jobs an individual can hold and no standard minimum — or maximum—number of hours a person can work in any given H-1B position.

Since you’re currently on an H-1B — and already went through the annual H-1B lottery process — you can transfer your H-1B to another company and avoid having to go through the lottery process again. However, you should keep in mind that the maximum stay allowed under an H-1B visa is typically six years unless you apply for a green card.

So, if you’ve been inside the U.S. on H-1B status for a cumulative period of four years, transferring your H-1B to your startups would mean you can live and work in the U.S. for two more years in this status.

H-1B transfers and concurrent H-1Bs can be tricky, particularly for early-stage startups, so it’s important to create a compliant foundation for immigration sponsorship. You will need to structure your startups so that they are eligible to sponsor you for a position and that clear lines are drawn between the two startup entities. I recommend you work with both a corporate attorney and an immigration attorney.

Ask Sophie: Do I need 2 visas to work at 2 different startups? by Walter Thompson originally published on TechCrunch

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Ask Sophie: How much time and money will we need for a H-1B transfer?

Sophie Alcorn Contributor
Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.
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Here’s another edition of “Ask Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

TechCrunch+ members receive access to weekly “Ask Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.

Dear Sophie,

My startup is hiring and many excellent engineers need H-1B transfers, but I haven’t done one yet.

Approximately how much time and money will we need to set aside for the process? Are there alternatives?

— Careful Co-Founder

Dear Careful,

Congrats on making it to the next stage: hiring!

Working with an experienced immigration attorney can help you save time and money in the process so you can onboard your new hires rapidly and continue to build. It’s important that your attorney understands your startup’s vision and goals.

Transferring a H-1B

To start, it’s important to take the required steps to qualify your startup for sponsoring the H-1B visa before proceeding with the transfer. If you’re transferring the H-1B of an individual who was recently laid off and is still in the U.S., it’s important to take these steps quickly since that person’s 60-day grace period has already started counting down.

Your attorney will help you determine the best strategy and assist your company with petitioning for the new hire.

Most immigration attorneys charge flat fees for their services, but those fees can vary substantially, so consider your options. According to a National Foundation for American Policy report issued a few years ago, the government filing fees and attorney legal fees for preparing and filing an H-1B transfer range in the market from $5,000 to $30,000 (rare but apparently possible!).

An H-1B specialty occupation visa transfer for a startup can typically be accomplished in a month or so, and usually for less than $10,000 all in — often much less than a recruiter. Check out this podcast episode on how to save money in the immigration process.

A composite image of immigration law attorney Sophie Alcorn in front of a background with a TechCrunch logo.

Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window)

How the process works

For a brand-new startup, your attorney will first get your startup’s Federal Employer Identification Number (FEIN) verified by the U.S. Department of Labor’s Office of Foreign Labor Certification, which takes about a week.

Next, your attorney needs to file a Labor Condition Application (LCA) with the Labor Department to basically verify your startup will pay the H-1B transfer candidate the prevailing wage based on the job and geographical location of the job and that no qualified American worker is available to fill it.

The LCA has a dual purpose of protecting both American and foreign workers. There are posting requirements of various documents which can be accomplished digitally and/or physically depending on if you have a remote or physical office. The Labor Department normally processes LCAs in less than two weeks.

Ask Sophie: How much time and money will we need for a H-1B transfer? by Walter Thompson originally published on TechCrunch