Experts weigh in on what tech companies can do to grow amid downturn
BNN Bloomberg
Experts say companies need to be aware of the challenging environment, but must also find ways to grow in order to come out of the sector downturn in a stronger, more competitive position.
Shopify Inc. last month announced it would lay off 10 per cent of its global workforce and would cut spending in lower priority areas and non-core activities. In June, Wealthsimple said it would be cutting its workforce by 13 per cent and would be "laser focused" on its core businesses, namely investing, banking and crypto. And last week, Vancouver-based Hootsuite said it was eliminating 30 per cent of its workforce in a global restructuring.
Other notable tech names that have announced layoffs in recent months include Clearco, Coinsquare, online furniture seller Article, and Thinkific Labs Inc.
Younger businesses trying to drum up financial interest are also starting to see a very different climate than just a few years ago. The Canadian Venture Capital and Private Equity Association says the number of deals and the average deal size were both down in the second quarter compared with the first three months of the year.
