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Many tech startups (but not only them) are laying off people as part of their preparation for a “winter is coming” season in fundraising.

Last year, more than 107,000 jobs were slashed from public and private tech companies in the US, and this January the large tech corporate layoffs reached about 60,000 employees losing their jobs, with Google GOOG , Microsoft MSFT , Amazon AMZN , Goldman Sachs, and Salesforce cutting thousands of employees.

Some of these layoffs are tied to the potential recession and the hardship of raising capital in the next year or two, which is realistic. But there is another major reason for it and it has to do with the 2020-2021 hunger for growth and the belief recruitment is a sign of it. This is while users, usage, retention, ARR, and revenues should be

Keep reading this article on Forbes Small Business.

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