Startups

AI investments and acquisitions are increasingly followed by layoffs in the tech industry. Companies like Accenture, Meta, and HP, after investing in or acquiring AI startups like Snorkel AI, Scale AI, Windsurf and Humane, subsequently reduced workforce. This trend reflects a shift from prioritizing startup culture to rapidly optimizing for ROI and eliminating overlapping roles. While AI advancements may create new jobs, the immediate impact involves workforce restructuring, potentially impacting talent attraction and demanding greater employee protections related to acquisitions. The industry is aggressively recruiting in core AI roles despite overall reductions.

A proposed $100,000 H-1B visa fee by the U.S. government is causing alarm among American startups, potentially hindering their growth by restricting access to crucial foreign talent, especially in IT and engineering. Founders fear the fee is prohibitively expensive, disproportionately impacting early-stage companies and forcing them to consider less qualified domestic applicants. Legal tech firms report a surge in inquiries as startups grapple with uncertainty. VCs worry about stifled innovation, reduced investment, and a potential shift of talent and capital to countries like the UK and Canada.