The tech industry has seen a wave of layoffs in recent years, with nearly 400,000 professionals losing their jobs since 2022. This has prompted many individuals to explore new opportunities, particularly in startups focused on AI and machine learning technology.
It is interesting to note that a significant number of laid-off tech professionals have channeled their energy into starting their own companies. In fact, for every 100 tech professionals laid off, 13% have taken the entrepreneurial route. Among them, software developers are the most likely at 9%, followed by engineering managers and product managers.
Former employees of Meta, a company that has experienced layoffs, are particularly inclined to start their own businesses, with three out of four former Meta staffers having launched their own company. Other companies that have seen former employees venture into entrepreneurship include DoorDash (30%), Amazon (25%), Flexport (24%), Twitter (16%), and Shopify (15%).
Interestingly, nearly half (44.4%) of these startups were founded by individuals who held managerial or director-level positions prior to being laid off. It appears that those with more work experience and developed skills are more likely to pursue entrepreneurship after job loss.
Despite the decline in funding after a record year in 2021, over five million startups were launched in the United States in 2022. Functionality seems to be a critical factor in the success of startups. According to David Eli, CEO of StartupBlink, startups that address real pain points are more likely to thrive. These “aspirin” startups, as Eli calls them, are gaining attention and investment even in a challenging funding environment.
For those looking to transition from big tech companies to startups, particularly in the field of AI and machine learning, there are abundant job opportunities. The World Economic Forum’s The Future of Jobs Report 2023 reveals that 50% of organizations expect AI to drive job growth, with nearly 75% of surveyed companies planning to adopt AI. Predictions indicate that AI will create 133 million new jobs globally.
If you are interested in pursuing a career in AI, the TechRepublic Job Board is a valuable resource. It features thousands of job listings from startups that are currently hiring. Some notable AI startups making waves in the industry include Cohere, which provides natural language processing models for improved human-machine interactions; Anthropic, focused on increasing the safety and transparency of AI; and Adept, aiming to rival OpenAI with its AI-system ACT-1 that assists with everyday tasks.
The opportunities in AI startups are vast, and now is a great time to explore a career in this field.