This tracker includes layoffs conducted by U.S.-based companies or those with a strong U.S. presence and is updated at least bi-weekly. We鈥檝e included both startups and publicly traded, tech-heavy companies. We鈥檝e also included companies based elsewhere that have a sizable team in the United States, such as , even when it鈥檚 unclear how much of the U.S. workforce has been affected by layoffs.

Layoff and workforce figures are best estimates based on reporting. We source the layoffs from media reports, our own reporting, social media posts and , a crowdsourced database of tech layoffs.

We recently updated our layoffs tracker to reflect the most recent round of layoffs each company has conducted. This allows us to quickly and more accurately track layoff trends, which is why you might notice some changes in our most recent numbers.

If an employee headcount cannot be confirmed to our standards, we note it as 鈥渦nclear.鈥�

After the 2024-25 job cuts at , and other tech companies, the second wave of tech layoffs is rewriting the startup labor market.

Skilled professionals are suddenly available, creating both opportunity and pressure for founders and workers alike. Startups now compete for talent that once seemed untouchable, while employees face longer job hunts and rethink how and where they work.

Higher expectations, more side gigs

With talent flooding the market, candidates are demanding more flexibility and clearer growth paths, even as many accept contract work or lower pay to stay employed. The typical job search now stretches six to seven months, even longer for those needing visas or relocation. That uncertainty has fueled a surge in freelancing and side projects.

reports that now have a side gig, with more than half of them having started in the past two years. While many professionals didn鈥檛 plan to freelance, they turned to it because they had no other choice. For some, it has proved liberating, with compared with corporate roles, according to our internal data.

Despite all the buzz in the media and even on , overemployment 鈥� the trend of holding two jobs 鈥� remains a niche phenomenon, affecting according to the . The more common pattern is a mix of contract work and short-term projects, which gives startups a chance to hire A-level talent for fractional roles they couldn鈥檛 have afforded before.

Smaller, sharper teams

Payroll is every startup鈥檚 biggest cost, and founders are trimming teams while raising output per employee. The examples are striking. reports about with a staff of only 11.

has reached roughly with 15-20 people. Data from shows that the average seed-stage team in the consumer and fintech since 2022.

This lean approach is spreading beyond early-stage ventures. Around say they are open to hiring freelancers during peak workloads; more than 28% already integrate them into daily operations. As this makes clear, smaller core teams, supplemented by trusted project-based workers, can move faster and spend less.

Opportunity on both sides

For workers, the takeaway is that startups may now be the safer bet. Mid-sized firms that once promised stability are cutting jobs, while startups are candid about their risks and can reward performance with equity or future roles. A short contract can become a long-term stake.

On the other hand, for founders, today鈥檚 market is a chance to recruit top engineers, designers and operators at terms that were impossible two years ago. It also demands a new mindset involving compensation flexibility, project-based roles and hiring processes built for speed.

All in all, the second wave of layoffs has changed expectations and shifted supply and demand in the job market. Workers are blending traditional jobs with side gigs, and startups are proving that small, focused teams can out-execute much larger competitors.

On both sides, adaptability is now the ultimate advantage; companies that remain nimble will win.

, founder and CEO of , is an entrepreneur with more than 20 years of experience, and a freelance economy pioneer who aims to transform how companies engage with contractors. In 2014, Shynkarenko launched his first HR tech company, , a fintech payroll company for freelancers, which showed $10 million-plus in revenue for 2022 and 2023. In early 2024, responding to the growing demand for specialized solutions for long-term interaction with contractors, Solar Staff, as a global company, pivoted to Mellow ($1 million MRR).

Related reading:

• The 附近上门 Tech Layoffs Tracker
• Data: Tech Layoffs Remain Stubbornly High, With Big Tech Leading The Way
• More Layoffs Are Coming. Here Are Hard-Earned Lessons From A Former CEO Who鈥檚 Been There On Doing RIFs The Right Way

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Reductions in force, or RIFs, are often unavoidable and always painful. I鈥檝e been there. And judging by the latest data from the 附近上门 Tech Layoffs Tracker, RIFs are continuing at a steady pace.

This year, tech firms both large and small have announced layoffs. Even companies in industries with rapid growth, like artificial intelligence, are not immune, as we saw announce a 14% RIF in July.

As a leader, you can effectively manage RIFs if you develop a comprehensive strategy and apply the insights gained from the experience and perspectives of other leaders who have been through them.

During my stints as a senior executive and CEO in various banks, I had to shutter more than one business that wasn鈥檛 making strategic sense. As a founder, I had to lay off the majority of the team in a business that didn鈥檛 find its product-market fit.

In both cases, many of the team members were long-time colleagues and friends. It sucked.

If you are not currently facing a RIF, this is the perfect time to create a strategy for one and hope you will never need it. Regardless, it is still crucial to assess the factors and events that could necessitate such a response.

Let鈥檚 explore what those look like.

Factors influencing RIFs

RIFs can be caused by macro and micro factors, the fault of the leadership team, or truly be necessitated with no one to blame.

At the macro level, if you look at venture capital and private equity, limited partners have been vocal about reducing their funding commitments until they see some capital returned. Secondary stock sales are not giving them much comfort that their GPs鈥� valuations of their portfolio companies are realistic.

The upshot for founders: You may be unable to count on that next raise being as large or coming as quickly as you had planned.

At the individual company level, a RIF may be the best or only way to deal with a change in strategy and market positioning. It may also be the most sensible option to revamp an organization that is no longer streamlined for success. The unexpected loss of a key customer could leave leadership with no choice but to reduce headcount.

One positive aspect that we can draw from the most recent economic data is that the U.S. economy has held up better than many expected, despite or perhaps because of changes in trade policy, tax rules and beyond.

However, uncertainty still looms for the second half of 2025 and into 2026. Including a downsizing scenario in your planning makes strategic sense, no matter how optimistic the outlook generally.

Conducting RIFs with compassion and clear strategic objectives

Your main priority in conducting a RIF should be treating employees with compassion. While this might seem obvious, there have been many instances in recent years where this hasn鈥檛 been the case.

I see too many RIF announcements that provide only vague rationales. This may be what your lawyers advise, but it clouds the perception of 鈥淎re you really on top of the business?鈥�

Be as clear as you can about why this RIF had to happen and why now. To the extent you can afford severance and placement assistance, the positive impact on the remaining team may be as powerful as retention bonuses for key people. It will pay off in the recruiting marketplace.

Similarly, I have seen RIF plans that cut evenly across the company, without a strategic plan to reallocate resources to the best-performing teams, products and markets. Very often, this leads to a second, or even third, RIF within a year.

Let鈥檚 turn to the CEO and top team. Anyone with a shred of empathy will hate announcing and leading a RIF, no matter how justified. However, the remaining team needs leadership that is focused and sympathetic, yet calm and energized about the post-RIF opportunities.

By all means, turn to your peers who have been through this. Mentors and coaches can play a brief but pivotal role in providing guidance and serving as a neutral party to confide in.

Perhaps surprisingly, there is potential upside in downsizing. After a couple of personal repetitions and counseling of other CEOs, I came to realize that a RIF can create opportunities to promote and hire superior talent into new positions. In particular, if you are shrinking one product line or geography, you may be looking to reassign talent to existing teams that you鈥檙e able to keep.

Striking the right balance of empathy for those leaving and optimism toward those staying and joining is possible. Focus, conviction and empathy will get you there.

Mistakes to avoid along the way

I鈥檝e been in the business for decades and I鈥檝e learned some lessons. The first is that I wish I had developed both pessimistic contingency plans and optimistic business projections. Even a skeleton plan of how you will reduce burn rates, who stays and who goes, allows leadership to focus on execution and communication when they are most critical.

The next step is to keep your investors informed about this planning. This not only ensures that you look professional, but it also gives you the best chance to get their support when it鈥檚 no fun for them either.

On the topic of communication, I learned to keep the story short, candid and in your own voice. If it sounds like a committee or outside counsel wrote your message, you will lose authenticity when it really matters. Reiterate your right to win and your confidence that the RIF sets you up for success.

From a tactical perspective, conduct the RIF mid-week and hold a follow-up town hall on Friday. Letting people know they are being let go on a Wednesday gives them and HR some time to process before the weekend. Similarly, a town hall on Friday gives you the best shot at sending the remaining team into the weekend with the story you want to tell.

Anticipation, planning and clear communication. Done correctly, a RIF can galvanize and focus an organization.

is an organizational and strategy consultant who helps individual and corporate clients with executive coaching, team development, succession planning and strategy development. He has had leadership roles in large and small organizations: he ran the global financial services group at , was the CEO of , led 鈥檚 U.S. expansion program, and co-founded , a data analytics company. During the 2008-2009 economic crisis, McMahon was an adviser to the on the Troubled Asset Relief Program, and he has served on several nonprofit boards, including the , of New York, and the .

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Per , only around $627 million in global venture funding has gone to companies in gaming-related industry categories so far in 2025. That puts the industry on track for its worst annual funding total in years, as charted below.

Investment has also been trending lower the past few quarters. With Q2 winding to a close, it looks like it鈥檚 the weakest quarter in years for gaming investment.

By many other measures, gaming looks pretty robust

As usual, sluggish funding has nothing to do with the number of people who play games or the amount of time they spend on them. Last year, for instance, more than 190 million Americans engaged with video games, per an .

They鈥檙e not doing so on the cheap, either. Collectively, Americans spent over $57 billion on content, hardware and accessories in 2023, the last annual tally covered in the report.

Notably, the largest gaming brands are also doing well on public markets. Shares of , , and others all soared higher this year.

On the M&A front, the gaming sector also looks strong. The space provided one of the largest startup acquisitions of recent months with 鈥檚 March maker in a deal valued at $3.5 billion.

May brought another 10-figure transaction, as private equity firm made a $2.5 billion debt-and-equity investment in Istanbul-based , maker of the popular mobile games Royal Match and Royal Kingdom. Under terms of the deal, Dream鈥檚 initial venture backers will exit, with CVC reportedly holding a in the company.

Startups that are getting funded

Actual startup funding, by contrast, consists of much smaller sums. For instance, there were no venture rounds of $100 million or more so far in 2025, a sharp contrast to prior years.

Still, we did see some good-sized deals. 鈥� an apt name for a gaming startup seeking funding in the current investment environment 鈥� scored the largest venture round of the year so far. The Brooklyn-based company, which operates a fantasy sports betting platform, closed on $70 million in a March Series C led by .

The next-largest round, a $30 million Series A, went to Istanbul-based , known for its brightly animated mobile games. In third place was a $25 million Series A for another Istanbul company, , which makes the puzzle game Kitchen Masters. Altogether, it appears that Turkey鈥檚 largest city is shaping up as a global center for gaming talent.

Below, we used 附近上门 data to aggregate a list of the eight largest gaming-related rounds so far this year.

Strange times

The sluggish pace of gaming startup funding comes amid challenging times for industry professionals.

In particular, it鈥檚 a challenging time for job seekers. The 鈥檚 2025 report found that 1 in 11 developers had lost their jobs over the past year. In recent years, the largest gaming companies, including and , have carried out mass layoffs, and several studios pulled the plug on prominent titles in development.

Like many sectors, gaming funding may also be affected by the huge wave of investment in generative AI unicorns whose tools can be used across a myriad of industries. While 附近上门 doesn鈥檛 classify and other GenAI giants as gaming-related companies, developers do use their tools and technology for tasks like creating dialogue or mockups of characters and environments.

Looking ahead, however, it鈥檇 be nice to see a pickup in gaming-specific venture investment as well. Particularly given that so many talented developers are struggling to find employment at established companies, there ought to be an easier path for their skills and drive to migrate to the startup world.

Related 附近上门 queries:

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A combination of factors likely helped drive the uptick, including the threat of tariffs, the rise of artificial intelligence, and continued economic uncertainty.

After dropping substantially last December, job cuts spiked again in February and April this year 鈥� totaling more than 38,000 in those two months combined 鈥� per the 附近上门 Tech Layoffs Tracker. February saw more than 14,000 layoffs while April surged to 23,850, with both large-cap tech companies and startups reducing staff.

In May, we saw a total of 57,422 layoffs. That compares to 95,177 in all of 2025. So far in June, at least 923 U.S. tech workers have been laid off, per 附近上门 data.

Executive coach said layoff trends this year are following closely those of last year.

鈥淐ompanies are doing layoffs when they need to for financial reasons, if they pivot their company 鈥� so they’re laying off in one area while hiring in one area 鈥� and as a way to handle performance issues that have been put off,鈥� she told 附近上门 News.

Cohn also pointed out that many startups that raised money during peak ZIRP years are now scrutinizing their runways and coming up against the challenges of fundraising again.

鈥淭hose companies are definitely re-orging and laying people off,鈥� added Cohn, who is also the author of 鈥淔rom Start-up to Grown-up鈥� and has such as , and .

Companies cutting

In recent months, we鈥檝e seen a number of Big Tech and publicly traded companies, as well as startups, make deep cuts.

But interestingly, public tech companies have dominated layoff headlines as of late.

In the past few months alone, laid off 220 employees, let go of 100 employees, and has laid off at least 425 workers, by our count. let go of 6,000 workers, or about 6% of its staff, in May, followed by more than 300 again this month. has slashed at least 200 jobs in recent months. 鈥檚 cuts have been among the largest among tech companies this year, with 22,000 of its workers losing their jobs in late April and an unspecified number again this month.

Those Big Tech layoffs may be setting the tone for smaller tech companies and startups.

Despite signs of a comeback year, fintech as an industry has continued to see struggles at both private and public players. Startup laid off an unspecified amount of workers while , which went public in 2020, let go of 7% of its workforce. , which makes software designed to streamline lending operations, also reportedly laid off an unspecified number of its staff.

But it appears no sector has been immune. In May, edtech company laid off 248 employees and cybersecurity outfit let go of 500 employees.

Job openings down, applications up, and AI鈥檚 role

As evidence of how tough it is out there, , a hiring platform for college students, recently released a noting that the class of 2025 is graduating 鈥渋nto the most competitive job market in years.鈥�

According to a spokesperson, job postings on Handshake have declined 15% over the past year, while the number of job applications per job has increased by 30%.

鈥淭his is consistent with broader trends we鈥檙e seeing in the macro data and other job platforms,鈥� the spokesperson said.

Cohn agrees it鈥檚 a tight market.

鈥淚’m definitely seeing companies slow down their hiring and people who are looking for jobs are looking for longer,鈥� she told 附近上门 News.

Cohn believes the increased interest and use of artificial intelligence is part of the overall uncertainty and contributes to the trend of companies being slow to hire. And, the impact of that uncertainty is significant, in her view.

However, she doesn鈥檛 see AI taking over so many jobs that it鈥檚 leading to more layoffs 鈥� for now at least.

鈥淚 think it’s obvious that we need to keep an eye on that, and AI may contribute directly to job loss and layoffs in the months and years ahead,鈥� Cohn said.

Handshake believes it鈥檚 too early to tell the impact of AI on the job market.

鈥淲hat we have noticed is an increase in employers seeking talent with AI knowledge and skills,鈥� the spokesperson said, noting that mentions of gen AI tools in job descriptions have increased more than 4x in the past two years.

Methodology

Layoffs figures are from The 附近上门 Tech Layoffs Tracker, where we record reported job cuts at U.S. tech employers. The tracker includes layoffs conducted by U.S.-based companies or those with a strong U.S. presence 鈥� both privately and publicly traded 鈥斕齛nd is updated at least bi-weekly. Layoff and workforce figures are best estimates based on reporting. Actual layoff figures are likely much higher than reported as many companies do not disclose the number of jobs cut when announcing layoffs. For more about our methodology for tracking layoffs, refer to the tracker鈥檚 methodology section.

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鈥檚 at underscores how swiftly mishandled workforce changes can spiral into significant legal and reputational crises.

For startups 鈥斕齱hose attention is often intensely focused on innovation and fundraising 鈥斕齩verlooking fundamental employment law responsibilities can become a costly oversight.

That said, the importance of embracing employment law essentials from inception cannot be overstated. Doing so helps startups manage growth responsibly, prevent legal pitfalls and position themselves for sustained success.

Navigating workforce reductions responsibly

As market conditions shift, startups inevitably confront tough staffing decisions. But terminations handled improperly can lead to severe consequences.

Mass layoffs trigger notification requirements under federal and state WARN Acts, and even smaller workplace reductions necessitate careful planning to avoid unintended discriminatory outcomes or wrongful termination claims.

Transparent, fair and well-documented termination processes protect startups from expensive litigation and preserve their integrity among investors and employees.

Structuring equity agreements clearly

Equity compensation remains a pivotal incentive for attracting talent, especially when cash flow is tight. According to 鈥檚 , reliance on equity grants continues to increase.

However, poorly constructed equity agreements often precipitate legal disputes. To mitigate these risks, founders should explicitly define vesting schedules, termination conditions, equity repurchase rights and option exercise windows.

Incorporating “bad leaver” clauses helps maintain clear capitalization tables by enabling companies to reclaim equity from employees leaving under unfavorable conditions.

Founders who fail to include detailed separation terms may resort to retroactively classifying terminations as “for cause,” leading to contentious litigation. Clearly articulated equity provisions from the start can preclude disputes, particularly during crucial phases like mergers, acquisitions or IPO preparations.

Ensuring compliance with compensation and classification

Startups often adopt creative compensation methods, such as equity or deferred payments, to attract talent. Although appealing, these carry significant legal risks. Employees classified as exempt must meet strict salary thresholds under the Fair Labor Standards Act. Paying solely through equity or deferred compensation risks violating wage-and-hour standards, potentially triggering enforcement actions and penalties.

Additionally, misclassifying employees as independent contractors can attract scrutiny from federal and state authorities, leading to substantial fines and legal challenges. Ensuring accurate classification aligned with federal and state laws is crucial for protecting a startup鈥檚 financial stability and legal compliance.

Managing restrictive covenants carefully

Noncompete and nonsolicitation agreements can effectively protect intellectual property and help to retain talent. Yet, enforceability varies across jurisdictions. States like California significantly restrict these agreements, while others require narrowly tailored provisions. As such, startups 鈥� particularly those with remote or hybrid teams 鈥� must avoid overly broad definitions, geographic and otherwise, which may be invalidated by courts.

Recent regulatory initiatives and legislative shifts further challenge broad restrictive covenants, viewing them as hindrances to innovation and labor mobility. Crafting agreements that specifically protect legitimate business interests can ensure enforceability and legal exposure.

Responding proactively to workplace allegations

Allegations of workplace misconduct or regulatory violations can emerge unexpectedly, presenting significant risks to startups. Ignoring or insufficiently addressing these claims exacerbates legal and reputational damage. Prompt, thorough internal investigations demonstrate proactive leadership and help mitigate risk exposure.

Also, reinforcing confidentiality and nondisclosure obligations when employees leave safeguards sensitive information. Actively reminding departing employees and future employers of these obligations further secures a company’s competitive advantage.

Preventing founder conflicts

Internal founder disputes are a frequently overlooked risk. Research indicates nearly half of early-stage companies experience significant founder disagreements within three years. Equal ownership structures often exacerbate decision-making paralysis. Establishing dispute-resolution mechanisms early 鈥� such as buy-sell provisions, arbitration or mediation 鈥� prevents destructive conflicts and ensures smoother operational continuity during critical milestones.

Strategic early investment in legal counsel

Startups typically view legal expenses as burdensome, especially in their early stages. Nevertheless, strategic early investments in employment and corporate counsel can meaningfully reduce long-term legal risks.

Early-stage legal guidance on employment contracts, equity structuring and termination practices helps safeguard company assets and supports compliant, stable growth.

Building a strong foundation

In the competitive startup landscape, attracting and retaining talent is critical. Founders who prioritize legally compliant employment practices alongside innovation establish robust, resilient businesses. By proactively addressing employment law essentials, startups avoid costly mistakes and secure their ability to thrive in the long term.

is a partner at , a national law firm with offices in Los Angeles, Irvine and San Francisco, California; Dallas and Houston, Texas; and Chicago and New York City. He has extensive experience advising emerging growth technology companies and investors, particularly those in the life sciences, consumer technology and real estate technology spaces.

is Los Angeles Office managing partner at Michelman & Robinson LLP. Also the firm鈥檚 employment advice, counsel and executive disputes chair, she advises management regarding employment and labor law issues, including state and federal employment acts, hiring, firing, discrimination, harassment, and wage and hour compliance. In addition, Shortz handles executive employment contract disputes and conducts workplace training, investigations and compliance.

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When is the right moment to shift your company, your role, or even your entire industry?

Ask a dozen people, and you鈥檒l get a dozen different answers. But in venture capital, one thing is clear: we are at the peak of a talent shake-up.

The breaking point: 2023-24

Let鈥檚 rewind. The bottom of the venture cycle hit in 2023, a year that didn鈥檛 just hit valuations and deal flow but also put immense pressure on VC talent.

The downturn led to frustration, misalignment and career soul-searching. For some, it was a breaking point. For others, a wake-up call.

Either way, it set the stage for one of the most dramatic talent shifts the industry has seen.

What fueled this movement? Many factors, among them:

• The urge to break free: Many investors are, at their core, entrepreneurs. Some saw 2023 as a catalyst to launch their own firms rather than compete in an overcrowded system.
• Deal flow freeze: A risk-off dealmaking environment left many VCs unable to deploy capital, grow or build their track records, leading to frustration and career stagnation.
• The mega-firm misfit: Large firms often have hierarchies that might stifle rising stars, pushing ambitious partners to carve their paths. Meanwhile, the industry鈥檚 shift toward asset management (and away from high-risk, high-reward investing) deepened doubts about staying.
• Burnout and toxicity: Talk of toxic leadership and unhealthy work environments had long existed, but 2023 amplified these frustrations. Some couldn鈥檛 ignore internal conflicts and personal challenges anymore.
• Shifting career lanes: Not all VCs fully appreciated their roles. Many started exploring complementary paths, often eyeing operational roles where they could make a more tangible impact.
• Fundraising crunch: Raising capital became an uphill battle as LPs pulled back. With fewer opportunities to grow within, some reconsidered their long-term trajectories.
• AI disruption: The rapid ascent of AI forced firms to reassess their positioning, while some investors jumped ship to chase AI-driven opportunities that their firms weren鈥檛 ready 鈥� or willing 鈥� to embrace.
• The generational shift: For veteran investors, this downturn became a moment of reflection. Some saw it as a natural exit point rather than riding out another decade-plus cycle.

Despite hopes for a rebound, the venture market didn鈥檛 reignite in 2024. Recovery was sluggish, and momentum was weak. But one shift was impossible to ignore: VC talent was on the move. What once simmered in the background was now front and center, reshaping the industry in real-time.

The talent movement snapshot

Career moves, like life, aren鈥檛 linear. Many of the shifts we saw in the past few quarters might have been brewing for months or even years, and we may never know the real reasons behind every move.

A few notable recent VC moves include of , , while returned to from , and back to .

The urge to build new firms also seemed to accelerate:

• (ex-) MarathonMP with ;
• (ex-) started work on a new fund; and
• (ex-) forged her path.

Others had to adapt. after missing its fundraising goal by 40%, laid off 16% of its investment team, and .

In Europe, Cavalry Ventures lost its third partner in 2024, while (who left in 2023) to in 2025.

Early-stage VC also saw notable moves, including (ex- 1) and (ex-) both to start new firms.

So, what about 2025?

Career-defining decisions happen in two key moments: under extreme pressure (like 2023-24) or during peak market euphoria (like 2020-21). Outside these cycles, most stay put. But the last market descent triggered a talent reshuffling that鈥檚 still unfolding.

The best part? There鈥檚 still time. This year marks an inflection point. With nine months left, the venture landscape is still in flux but far more optimistic than in 2023-24. This is a rare moment to take control, realign ambitions, reignite networks and embrace reinvention. One thing is clear: The hunger for transformation has never been stronger.

This year will be defined by bold pivots and quiet recalibrations. Some will take the leap, others will strategically position themselves for moves in the coming quarters and years.

And for junior and mid-level VC talent? The opportunity is even bigger. With pressure easing and partner-level transitions reshaping firms, hiring is regaining focus. Now is the time to step up, claim new roles and make bold career moves.

One thing is undeniable 鈥� venture talent is on the move. Are you ready to make yours?

is the creator of , a quarterly insights project known for its 鈥淰enture Knowledge Alpha鈥� tagline. His investment expertise goes beyond venture, spanning real estate, renewables, infrastructure and equities. As the host of , he explores niche venture topics with founders, VCs and LPs, bringing fresh perspectives to the industry. Yadav has hands-on experience in tech, sales and product roles, and combines investment acumen with real-world operational and tech knowledge.

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Between large-scale industry layoffs and a growing pool of applicants for positions that are available, jobseekers find themselves in an increasingly competitive landscape. Employers, not so much.

That鈥檚 reflected in workplace perks. These days, employers are less prone to woo prospective hires with hefty sign-on bonuses, approve remote work when they鈥檇 prefer onsite, or offer elaborate workplace perks like gourmet meals or on-site masseuse visits.

Instead, startup employers in particular have been retooling benefits and perks with an eye to maintaining or reducing costs, all while sustaining workplace morale.

鈥淓veryone鈥檚 very cost-conscious,鈥� said , CEO and co-founder of , a startup that works with companies to set up perks and benefits plans. In recent quarters, she said, more companies have been adding benefits in areas such as fertility, dependent care and individually selected perks.

However, employers are also cutting benefits that they see as underutilized. This might include something like a universal gym membership that only some employees use. In the era of hybrid work, they鈥檝e also pared down spending for on-site events and opted for more frugal snacks and meal offerings.

Not so much competition

The current environment is a shift from the more-is-better mantra when startup funding was hitting record highs a few years ago.

Back then, startups vyed for talent in a tight labor market by offering higher salaries, flexible schedules, remote work, extensive paid time off, and subsidies for things like gym memberships and dependent care. Besides competing with each other, startups also had to contend with big tech companies like and , known for their chic campuses and lavish perks.

Today, the risk of employees jumping ship for a bigger paycheck and more perks is lower. For one, it typically takes more time and effort to land a new job than was the case a few years ago.

Employment by tech sector companies has also been , according to analysis from IT certifications provider .

That said, perks and benefits aren鈥檛 only designed to lure new hires. Companies also want to keep existing employees engaged, avoid burnout and maintain high job satisfaction. At maturing startups in particular, HR departments have to balance the needs of workers at different stages in their lives. Core constituencies might include recent graduates seeking mentoring and social connections as well as older peers starting families and navigating work-life balance.

Flexible perks are in

One way startups are catering to employees while keeping costs in check is by offering a choice of perks. Lifestyle spending accounts, for instance, allow employees to allocate a given sum across several options such as gym memberships, work-from-home expenses, and even potentially pet care.

And while parental leave has long been a standard benefit, we鈥檙e seeing an uptick in fertility benefits tailored to employees鈥� particular needs, with coverage potentially contributing to IVF, fertility consultations and adoption costs.

Another growth area is perks around commuting. While remote or hybrid work isn鈥檛 going away, we鈥檙e also not returning to the peak work-from-home pandemic days. As employers seek to bring more workers back on-site, they鈥檙e adding benefits aimed at reducing the cost of coming into the office, Chen said.

Where talent is in short supply, benefits follow

Of course, there are still ultra well-funded startups offering very generous salaries and benefits packages to those with in-demand skills. This seems to be especially the case in the AI space.

A perusal of career sites at some of the most highly valued U.S. unicorns gives a sense of what鈥檚 being offered.

鈥檚 perks include unlimited, flexible time off, daily breakfast, lunch, and dinner, and coaching sessions, along with robust medical, family leave and travel benefits. At , 100% of medical, dental and vision insurance are covered, with benefits extending to childcare support and mental wellness.

A number of unicorns, including CoreWeave and , offer fertility benefits through another onetime startup, , which is now part of health and social services software provider . Other startups offering perks and benefits popular with the unicorn crowd include , provider of a mental wellness platform, and , which helps families find child care.

A cyclical thing

Much like economic cycles, the level of perks employers offer tends to rise and retreat. Currently, with the startup job market down from its peak-era frenzy, we appear to be in one of the periods of retreat.

That said, past history teaches us that given enough time, things will heat up again. Expect ever-more-enticing perks and benefits packages to follow.

Related reading:

• The 附近上门 Tech Layoffs Tracker
• 5 Trends In Tech And Startups We鈥檙e Watching In 2025, From An M&A Rebound To A Defense Tech Boom

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This is a weekly feature that runs down the week鈥檚 top 10 announced funding rounds in the U.S. Check out the biggest funding rounds of last week here.

Big raises slowed for the second week in a row. Only a handful of rounds hit nine digits this week, although a large half-billion-dollar round led the way.

1. , $500M, information technology: IT professionals are stretched pretty thin these days, so it makes sense that a company that helps automate some of their work could raise big. That鈥檚 exactly what Nerdio did. The Chicago-based company raised a $500 million equity round from that values it at $1.2 billion, . While the company may be under the radar for some, it says it has more than 15,000 customers in 50 countries, is profitable and growing annual recurring revenue more than 85% year to year. Founded in 1998, Nerdio has raised $625 million, .

2. , $150M, biotech: Many patients shy away from taking opioids while many doctors are reluctant to prescribe the painkillers. Thousand Oaks, California-based Latigo Biotherapeutics is developing a completely different option for pain relief and raised a $150 million Series B led by funds managed by for it. The clinical-stage biotechnology company is developing new nonopioid pain treatments that target pain at its source. The fresh cash will support the advancement of the company’s Nav1.8 inhibitors currently in clinical development. Founded in 2018, the company has raised $300 million, .

3. , $127M, commercial contracting: Santa Monica, California-based BuildOps, a software platform to manage contracting projects from construction through to maintenance, addresses a $300 billion industry with hundreds of thousands of skilled workers from electricians to plumbers to HVAC professionals. The platform manages projects from scheduling to dispatching and invoicing. The funding was led by with participation from and , among others. Founded in 2018, the company has raised over $225 million, .

4. , $110M, biotech: Seattle-based Curevo, a clinical-stage biotechnology company developing vaccinations for infectious disease, closed a $110 million Series B led by new investor . The money will be used to advance the development of amezosvatein, a vaccine to prevent shingles 鈥� a serious medical condition involving a painful, blistering skin rash where 10% to 18% of people also develop serious, long鈥憀asting nerve pain, per the company. Founded in 2018, the company has raised $196 million, .

5. , $85M, analytics: Dataminr has been seemingly quiet on the fundraising front for a while now. Back in 2021, the data and analytics company raised a $475 million round at a $4.1 billion valuation. Since then, however, the company in November 2023. The company 鈥� which calls itself 鈥渙ne of the world’s leading AI companies鈥� 鈥� secured $85 million in new funding from and through a combination of convertible financing and credit. No new valuation was announced. In addition, NightDragon also intends to create a special-purpose vehicle for up to an additional $100 million in convertible financing available to third-party investors. The New York-based company has a real-time platform for detecting events, risks and critical information from public data signals and is approaching $200 million in annual recurring revenue. Founded in 2009, the company has raised $1.1 billion, .

6. , $74M, biotech: Cambridge, Massachusetts-based Arbor Biotechnologies, a biotech developing genetic medicines, closed a $73.9 million Series C led by and. Founded in 2016, the company has raised nearly $305 million, .

7. , $65M, biotech: Boston-based Ampersand Biomedicines, a biotech creating medicines designed to act specifically at the site of disease, secured a $65 million Series B. No lead investor was named, but those participating include and . Founded in 2021, the company has raised $115 million, .

8. , $56M, information technology: New York-based Carbon Arc, a provider of structured, model-ready data, launched and announced it has raised a $56 million round led by .

9. , $53M, medical device: Kirkland, Washington-based Cardiac Dimension has developed a minimally invasive device for heart failure patients at risk of functional mitral regurgitation (FMR). The funding will be used to support international expansion and complete trial studies in the U.S. The series E funding was led by with participation from existing investors. Cardiac Dimensions has raised nearly $263 million, .

10. , $52M, developer tools: New York-based Graphite, a code review dashboard, raised a $52 million Series B led by . Founded in 2020, the company has raised $72 million, .

Big global deals

The biggest raise outside the U.S. this week went to a biotech startup.

• U.K.-based biotech startup raised a Series A worth approximately $75 million.

Methodology

We tracked the largest announced rounds in the 附近上门 database that were raised by U.S.-based companies for the seven-day period of March 15 to March 21. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week.

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Under terms of the deal, Niantic鈥檚 game developers will join Scopely, which is itself owned by Saudi Arabia鈥檚 . Scopely will also own Niantic鈥檚 games, including the games Pikmin Bloom and Monster Hunter Now, as well as Pok茅mon Go and other titles.

The purchase represents the largest acquisition of a private, venture-backed game developer in a couple years, per 附近上门 data. The last deal of greater magnitude was Savvy鈥檚 of Scopely, publisher of Monopoly Go and other popular titles, for $4.9 billion in 2023.

Previously, San Francisco-based Niantic was a prodigious venture fundraiser, best known for augmented reality games that allowed users to parlay mobile apps into experiences in the physical world. The company began as a startup within Google and later launched as an independent company.

Between 2015 and 2021, Niantic secured at least $770 million in known equity investments, with , and among its lead investors.

Per Scopely, Niantic鈥檚 games business pulls in over 30 million monthly active players and drove more than $1 billion in revenue in 2024. Pok茅mon Go alone had over 100 million users in the course of 2024.

With the acquisition of its gaming business, Niantic will spin off its technology platform into a new standalone entity, Niantic Spatial. , Niantic鈥檚 founder and longtime CEO, will lead the new company, which he said will focus on 鈥渂uilding the models that will help AI move beyond the screen and into the real world.鈥�

The Niantic purchase comes amid a sluggish period for gaming-related startup investment, with funding to the space falling to the lowest point in years in 2024, per 附近上门 . It鈥檚 been a difficult period for developers as well, with mass layoffs at major game studios that began in 2022 and continued into 2024.

That said, game-playing isn鈥檛 showing signs of slowing down, with younger gamers in particular spending hours each week on their favorite titles.

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Related reading:

• After A Downish Year For Startup Funding, Gaming Has A Slow Start In 2025

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