Layoffs Are Still Happening, Defying Expectations of Seasonality Coming to an End

This is your weekly dose of startups news and insights from TechCrunch. In this issue, we’ll cover the latest layoffs in the startup world, the rise of AI-powered innovations, and more.

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Layoffs Hit the Startup World Again

The past week has seen a surge in layoffs across various startups. The numbers are staggering:

Vroom is shutting down its online used car marketplace, laying off 800 employees, or 90% of its workforce.
Expense management startup Brex laid off 282 people, or about 20% of its staff.
Riot Games is laying off about 530 employees, which represents 11% of its workforce.
Indian food delivery startup Swiggy is cutting about 400 jobs, or nearly 7% of its workforce.

These layoffs are a stark reminder that the startup world can be unpredictable and unforgiving. Even big companies like Amazon, TikTok, Microsoft/Activision, and Google are not immune to the trend.

The Rise of AI-Powered Innovations

AI is changing the game for startups. From natural language processing to computer vision, AI-powered innovations are transforming industries across the board.

ElevenLabs, an AI startup focused on audio editing, has raised $20 million in funding.
Researchers have open-sourced Sky-T1, a ‘reasoning’ AI model that can be trained for less than $450.

The potential of AI is vast and exciting. As startups continue to push the boundaries of what’s possible with AI, we can expect to see even more innovative solutions emerge.