Technical layoffs affected almost all regions of the worldas well as Southeast Asia is no exceptionwith companies like Sea, Crypto.com as well as JD ID among the victims. In particular, fintech startups — BNPL, lending and warehousing businesses — are as vulnerable as I am.n other parts of the world.
sequins, one of the largest job platforms in Southeast Asia with over 30,000 active job listings per month and 40,000 employers, recently released a report that shows the situation may not be as bleak (although it probably isn’t for those who just slept). off). There is still a shortage of tech talent, even in Singapore, where most of the layoffs and hiring freezes have taken place, because it is the regional headquarters of many international companies and a hub for start-ups.
“This is a correction in general. I think we’ve seen a lot of capital invested in the tech industry over the past two to three years in a major bull run. That being said, we had a lot of companies that were also expanding rapidly,” Glints co-founder and CEO Oswald Yeoh told TechCrunch.
“Singapore companies seem to be the fastest to respond to changes in the macro environment,” he added, “which isn’t necessarily a bad thing, because for some of those changes you want to act quickly.”
Teams were hardest hit, including operations, finance, and HR, as well as some sales and marketing departments.
Many new hires will take place remotely, and companies will look to Vietnam and Indonesia, where there have been fewer layoffs, for better technical talent. This is partly driven by a readiness for a decentralized workforce created by the pandemic.
“Together with cost-saving measures, because, on the one hand, the comfort of remote hiring has increased due to the pandemic,” said Yeo. “Then, on the other hand, there is a need to save money. So, both in terms of human capital and financial capital, many companies are actually more into remote hiring these days. For example, at Glints, we see that remote work opportunities have grown 10 times over the past year.”
In Malaysia, regional companies still hire employees from abroad, but local companies have returned to hiring local employees. Glints said they don’t expect middle and senior staff compensation to drop from current levels, but that it could affect junior talent compensation.
Another new trend is fixed-term contracts, usually for one year, which allow companies to better predict their financial prospects. “Employers are more cautious about permanent contracts with employers,” Yeo said.
“It’s not all doom and gloom in two ways, and yet there are positives,” Yeoh said. For example, he said that Glints still has a disproportionate demand for technology and product specialists, with the ratio favoring applicants.
Layoffs also give startups the opportunity to build their core team.
“For companies that are in a good position and can afford it, this is actually a great time to strengthen the bench, shape the management bench and the leadership bench with top management talent, because now there is a little less competition for talent.”
Credit: techcrunch.com /