Technology layoffs has hit most areas of the worldand Southeast Asia is no exceptionwith companies like Sea, Crypto.com and JD.ID among those affected. In particular, fintech startups — BNPLs, credit and loans, and inventory holding businesses — are vulnerable, like me.n other places in the world.
Glints, one of Southeast Asia’s largest job platforms with over 30,000 active job listings per month and 40,000 employers, recently released a report suggesting the situation may not be so bad. (although that may not feel the same for someone who has just been fired. off). There is still a tech talent crisis, even in Singapore, where most of the layoffs and hiring freezes have occurred as it is the regional headquarters of many international businesses and the hub starting a business.
“Generally an adjustment. I think what we’ve seen is a lot of capital has been pumped into the tech industry over the last two to three years in a big bull run. With that, we’ve got a ton of companies that have also expanded rapidly,” Glints co-founder and CEO Oswald Yeo told TechCrunch.
“Singaporean companies seem to be the most responsive to changes in the macroeconomic environment,” he added, “This is not necessarily a bad thing, because for some of these changes, you want to proceed quickly.”
The hardest hit groups include operations, finance and human resources, along with several sales and marketing teams.
A lot of new hires will take place remotely, with companies turning to Vietnam and Indonesia, both with fewer layoffs, to find top tech talent. This is driven in part by the readiness for a decentralized workforce created by the pandemic.
“Along with cost-saving measures, on the one hand, comfort in remote hiring has increased due to the pandemic,” Yeo said. “Then on the other end, there is this need to save costs. So, from both a human capital perspective and a financial capital perspective, a lot of companies are now actually doing more remote recruiting. On Glints, for example, we see a 10x increase in remote job opportunities over the past year.”
In Malaysia, companies in the region still hire across borders, but local companies have turned to domestic leasing. Glints said it doesn’t expect mid- to senior-level salaries to fall from current levels, but lower-level talent compensation could be affected.
Another new trend are fixed-term contracts, usually one year, that allow companies to better predict their financial prospects. “Employers are more cautious in committing to long-term contracts with employers,” Yeo said.
“It’s not all doom and gloom in both ways, and there are still positives,” Yeo said. For example, he said there is still a disproportionate demand for product and technology talent on Glints, with the ratio skewed in favor of job seekers.
Layoffs also give startups a chance to build their core team.
“For companies that are in a good position and can afford it, this is really a great time to strengthen the bench, shape the management bench and the leadership bench with the best talent. top management because right now there’s a little bit of competition for talent.”
