Hiring freeze at Big Tech unlocks talent pool for U.S. startups

The hiring spree comes even as startup funding is drying up in the face of decades-high inflation, a stronger dollar and massive rate hikes, which have pushed Big Tech to pull back on their spending spree

Late-stage U.S. startups are scooping up talent unlocked by layoffs and hiring freezes at Big Tech, adding experienced engineers and project managers to their roster despite signs of an economic slowdown.

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Companies, with steady cash flow from viable products in the market, are offering rich packages to lure talent that would have otherwise preferred working at big technology firms including Microsoft Corp. and Facebook-parent Meta Platforms Inc.

Stack Overflow Chief Executive Prashanth Chandrasekar said the coding platform's headcount had more than doubled this year to 540, with some of the new hires being tapped from firms such as Alphabet Inc.-owned Google and Apple Inc.

"When competitors downsize, other talented people who are employed there may consider looking elsewhere, as they may not see their company as being stable," Chandrasekar said.

Deepak Rao, CEO of X1 Card, said the credit-card startup's headcount had more than doubled to 35 in a year and more employees from larger companies would join it in the coming months.

Google, Apple, Microsoft and Meta and did not immediately respond to requests for comment.