Silicon Valley is starting to rewrite its own rules for success. Instead of emphasizing growth at all costs, technology investors are now telling startups to cut back on their spending, leading to hiring freezes, office closures, and job cuts.
Venture-backed tech companies that have reduced staff in the past few months include Evernote, Hootsuite, Jawbone, Snapchat, and Tango. Each has achieved a valuation of at least $1 billion from investors. A slew of cutbacks at such young, ascending companies is uncommon in the tech industry, where hiring is competitive and growth prospects are everything, with talent often gravitating toward hot, growing startups. The first sizable job cuts at Google didn’t come until about a decade after it was founded.