IT companies, learning from a difficult situation

Layoffs are not limited to IT profiles, which are surely the most expensive, starting today at 150K to 700K, without the need to have a hierarchical position.  They happen in all areas
Layoffs are not limited to IT profiles, which are surely the most expensive, starting today at 150K to 700K, without the need to have a hierarchical position. They happen in all areas

Lately, the news of layoffs in the IT sector in Argentina they became something constant and, for many, it seems to have no clear explanation. You have to start at the beginning, understanding that it is not an isolated or local phenomenon.

Since the beginning of 2022 we are witnessing the famous “layoffts” in the startups technology and unicorns from the United States. The motives? The great growth they achieved during the pandemic.

Today, a world economy affected by inflation and a battery of geopolitical problems, among other issues, are definitely affecting to companies that depend on investments to continue growing.

It no longer matters if the idea behind the business is perfect, if it solves the problem of many or if the technological product was correctly implemented: today many startups have a business model focused on investment, on aggressive growth that allows them to constantly add value. , and no longer in the classic profitability modelgenuine to reinvest in growth.

This wave hit, and even overturned, companies that we have been taking as an example when it comes to improving processes and the way in which we build better products: Netflix, Spotify, Meta, Google. The list is endless and the impact reached Argentina and the region.

Layoffs are not limited to IT profiles, which are surely the most expensive, starting today at 150K to 700K, without the need to have a hierarchical position. They happen in all areas.

It is very likely that the worst has not yet arrived, although surely Argentina and the region will be able to leave this difficult reality behind. The reasons for having that security are related to idiosyncrasy and talent. It is undeniable that we are used to adverse contexts and we have experience in reversing challenging situations.

Lean Startupsone of the methodologies most used by technology companies, highlights that it is essential to achieve sustainable growth tied to the business and not only to the investment. There is no doubt that this can shed light on the matter.

On the other hand, for several years now Argentine companies have been facing serious practices in FinOpsrelated to the application of economic and financial techniques to efficiently use Cloud. This greatly reduces operating costs, so you can redistribute that money or just save it for contingencies. Such is the case of Mercado Libre which, for more than 5 years, has prepared a team dedicated solely to this.

Finally, it is key to keep an integrity and technological vision completely aligned to the product and business of the startup, which will allow decisions to be made several months in advance. So that, in the face of abrupt changes or acceleration, there is the possibility of measuring the impacts with real data and, thus, making decisions that do not have to be redefined later due to the lack of investment.

As a systems engineer, university professor and entrepreneur, I am convinced that we are going to overcome this situation. We will become stronger and with many lessons learned. We are not the only country that is facing it and we are used to getting up. It will not be the first, nor the last time.

Keep reading:

What are “camel startups” and why are they not suffering the wave of layoffs?
Stability and less taxes: the combo with which Uruguay manages to stay with the Argentine technology companies
Unicorns in Qatar: who are the owners of tech companies worth USD 54,000 million that encouraged the National Team

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