Tech layoffs have hit almost every region in the world, and Southeast Asia is no exception, with companies like Sea, Crypto.com and JD.ID among those affected. Fintech startups – BNPL, credit and lending and stock holding companies – are especially vulnerable, as in other parts of the world.
Glints, one of the largest job platforms in Southeast Asia with more than 30,000 active job openings per month and 40,000 employers, recently released a report showing that the situation may not be so bleak (although it probably doesn’t feel that way to someone who has just been fired). ). There is still a shortage of technical talent, even in Singapore, where most layoffs and freezes have fallen because it is a regional headquarters for many international companies and a startup hub.
“It is a correction in general. I think we’ve seen a lot of capital pumped into the tech industry over the past two to three years in a major bull run. With that, we had a lot of companies that also grew quickly,” Glints co-founder and CEO Oswald Yeo told TechCrunch.
“Singapore companies seem to be the fastest to respond to the changes in the macroeconomic environment,” he added, “which is not necessarily a bad thing because some of these changes require you to act quickly.”
Teams hardest hit include operations, finance and human resources, plus some sales and marketing teams.
Many new hires will take place remotely, with companies turning to Vietnam and Indonesia, both of which have seen fewer layoffs, for top tech talent. This is fueled in part by the readiness for a decentralized workforce created by the pandemic.
“Together with the cost-saving measures because, on the one hand, the comfort of remote hiring has increased due to the pandemic,” Yeo said. “On the other hand, there is the need to cut costs. So from both a human capital and financial capital standpoint, many companies are now actually doing more remotely. On Glints, for example, we see that remote employment has increased tenfold over the past year.”
In Malaysia, regional companies still hire cross-border, but local companies have moved back to hiring locally. Glints said they don’t expect mid-to-senior compensation to drop from current levels, but junior talent compensation could be impacted.
Another new trend is fixed-term contracts, usually one year, that allow companies to better predict their financial prospects. “Employers are more cautious about signing permanent contracts with employers,” Yeo says.
“It’s not all doom and gloom in two ways, and there are still positives,” Yeo said. For example, he said there is still a disproportionate demand for technology and product talent on Glints, with the ratio favoring job seekers.
Layoffs also give startups the opportunity to build their core teams.
“For companies that are in a good position and can afford it, it’s actually a good time to strengthen the bank, shape the management bank and the leadership bank with top management talent, because now there is a little less competition for talent.”
This post Southeast Asia still has a talent shortage despite layoffs – TechCrunch
was original published at “https://techcrunch.com/2022/07/10/despite-layoffs-theres-still-a-talent-crunch-in-southeast-asia/”