Berlin Tech Startups Weather the Storm of Layoffs Amid COVID-19 Pandemic
2023-03-27
As the COVID-19 pandemic continues to wreak havoc on the global economy, the tech industry has not been spared from its impact. In Berlin, the home of one of Europe’s most vibrant tech ecosystems, the situation is no different. The past year has seen many tech companies announcing major strategic shifts, including hiring freezes and restructuring plans. However, amid the downturn, it is interesting to note that smaller companies in Berlin seem to be weathering the storm far better than their late-stage counterparts.
According to recent reports, layoffs in Berlin’s tech ecosystem have largely impacted late-stage companies, while smaller companies are holding up far better in comparison. This is good news for the city’s startup scene, which relies heavily on the continued growth of smaller companies for job creation and economic expansion.
What is particularly encouraging is that despite the challenges posed by the pandemic, there are still many Berlin-based startups and scaleups actively hiring. These companies represent a wide range of industries, from fintech and e-commerce to healthcare and artificial intelligence. Some notable examples of startups currently hiring in Berlin include Flixbus, Wefox, and Delivery Hero.
While the impact of the pandemic on Berlin’s tech ecosystem cannot be ignored, it is important to remember that not all companies have been impacted equally. As the city continues to navigate these challenging times, it is the smaller companies that will likely lead the way in terms of job creation and overall economic growth. It is also worth noting that foreign tech companies with secondary offices in Berlin have also been impacted by the pandemic, which has led to some high-profile layoffs.
Despite the challenges posed by the pandemic, Berlin’s tech ecosystem remains one of the most dynamic and innovative in Europe. The city’s startups and scaleups continue to push the boundaries of what is possible, and their resilience in the face of adversity is truly inspiring. As we look to the future, it is clear that Berlin’s tech scene will continue to play a vital role in driving innovation and economic growth, both in Germany and beyond.
Recent layoffs from tech companies with presence in Berlin include SAP, Google, Meta, Microsoft, Amazon, and Spotify.
Recent layoffs from Berlin-based scaleups and grownups
Companies hiring right now
Source: Dealroom.co. *Dealroom analysis based on compile publicly reporting on layoffs by Berlin-based scaleups and grownups, and foreign tech present in Berlin as of February 2023.