Top startup executives, who were laid off amid cost-cutting measures in the past year, are facing considerable challenges in securing new roles. Moreover, the generous pay packages they drew from their former employers are also hindering their re-employment prospects, founders, investors, and executive search consultants said.
“If they’re looking at tech startups for CXO roles, probably none—unless they’re willing to take pay cuts and lower their designations," said Siddharth Gopi, the co-founder of TopHire, a staffing solutions firm primarily focussed on tech companies.
“Overall, the number of openings is a lot lower in startups. And senior roles, especially, are even more affected than junior roles. Companies are preferring mid and junior folks that are hands-on rather than senior managerial folks who don’t get their hands dirty as much," Gopi added.
Industry estimates suggest that 27,000-28,000 people have been laid off in the past two years across startups. Of this, about 5-8% are CXOs, while mid-level executives account for 40-50%, and the remainder are junior-level positions, according to estimates by executive search firm Native.
“Most CXOs of tech startups who are not in action are finding it extremely difficult to find relevant new opportunities in today’s macroeconomic situation. The sudden tectonic shift in the market conditions is to be blamed," said Sai Gopal, partner for engineering and digital technology at Native.
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