A number of start-up companies or startups are currently being hit by a storm of layoffs.
According to him, these startup actors don't just have the mindset of burning money all the time. However, how can the company he leads be profitable in the future.
This is a warning, don't just make a startup by burning money, but how to route profitability, there must be a clear business model.
Startups that do layoffs are the last resort after going through the efficiency of various things, such as in terms of development costs, operations, building rentals, only related to human resources (HR)
As for those who experienced layoffs in the startup environment, it did not happen to all startups, but startup companies generally at the bootstrap to pre-series level. Then a business model that focuses only on traction, for example the number of application downloads to the number of customers.
Now investors see it not only burning money, but they will question if you save a lot of money, how is the cash flow, it must be positive. Then, when is EBITDA, when is profit. For example, the investor in the first round invests, in the next round he will ask the startup business model, then cashflow, EBITDA, and profits are positive or not.
The situation of a number of startups that is happening now is normal from a business perspective. He gave an example, there used to be Nokia, which is a cell phone of a million people who used to be victorious before sinking when Android appeared.
It's an adaptable business model.
There are several startups recorded to have laid off. Digital wallet company LinkAja, edtech Zenous, and e-commerce platform JD.ID have cut some of their employees.
Overseas, the situation is also deteriorating for some startups. A search from the aggregator layoffs.fyi shows that a total of 15 thousand employees in the technology world have lost their jobs in various countries.
