Is private company less likely to layoff
Doordash laid off thousands But no layoff with instacart, and Grubhub etc and some cloud kitchen stuff
Fyi GrubHub is a public company
My guess is it's less about being public/private, and more about debt and debt type. If a company is running at a loss, and has lots of investors and/or loans, well that debt becomes really expensive in times like these.
Twitter is private and had a lot of layoffs.
No, all companies (private or public) can be good businesses
I think, Instacart had layoffs in Q2/Q3
Laid off a lot from the recruiting teams along with silent layoffs in other orgs.
My spouse was laid off from a Series D, along with 20% of the staff. It's all about the financials and burn rate.
Difference is public companies you know what their financial situation is more clearly? Grubhub was worrisome but now we sold iFood for over $1 billion and are profitable, little less worried. Also def not crazy growth to cut back on like a lot of the layoff companies.
Public companies do have more pressure as the market can penalize them harshly for even small transgressions (think Meta, lightspeed, shopify, etc). Private companies do have a little more rope as they are only answerable to their board and not the prying eyes of hedge funds. But finally its about the cash flow. Growth was the most important thing in 2021. In 2022 profitability takes centerpiece. Said that no one is immune. If economy goes bad, I won't be surprised that even profitable private companies will start aggressive layoffs.
It’s not a hard rule but layoffs are often to inflate the stock price so there is a bit less incentive for private companies. But they still might if the numbers don’t add up