Since May 2022, there have been waves of startup layoffs. According to TFR News, a business expert from Inventure, startups have entered “startup winter,” where many investors withdraw their funds. The global crisis is the cause.
This economic challenge isn’t only impacted to the company’s management but also the employment functions itself. In several situations, talent hired including content creators at tech companies is also affected by the layoffs.
Are content creators vulnerable to layoffs?
According to Ecommerce & Tech Meme Factory’s talent list, Ecommurz, around 1,989 employees have been laid off. More than 200 of them are content creators, such as writers, illustrators, and animators.
Why are content creators vulnerable to layoffs?
In fact, they must meet a variety of needs within the company, which differs for strategic positions such as marketing communications. Companies don’t need a lot of employees, but if they are creative, there will definitely be a lot of them. It takes many parties to consistently create good content.
Of course, this makes operational costs increase. Not to mention, content doesn’t generate revenue directly, unlike the sales department. The impact of good content doesn’t come instantly, but will be seen after a while. This what makes them vulnerable to layoffs. When a company is in financial trouble, sales will be prioritized, while expenses for marketing costs will be adjusted.
In general, content is under the marketing department. Startups, especially new comers, need awareness, but now there are definitely many who need sales. So that operational costs were reduced a lot earlier, possibly from there.
However, not every companies reduce the number of creators. Some companies need a lot of content creators. For example, micro, small, and medium-sized businesses rely on content creator activities to help them increase sales. Apart from that, creators still highly demand in several industries such as EduTech and entertainment
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