Layoffs.fyi reports that more than 23,000 tech workers have been fired so far in this month. The site also tracked 12,463 layoffs for October.
Facebook’s parent company Meta announced the first major job cuts in its history this week, eliminating 11,000 jobs. Many of those affected are immigrants on worker visas.
An unexpected layoff introduces an element of chaos into anyone’s life, but when an H-1B worker loses their job, a very loud clock starts clicking: unless they can land a new position or change their immigration status within 60 days, they’ll need to leave the country. Their ability to work and live in the U.S. suddenly becomes a concern as tech companies of all sizes are implementing hiring freezes and planning for more cuts.
Earlier today, I hosted a Q&A with immigration lawyer Sophie Alcorn for H-1B workers who have been laid off (or think they might be).
“You either get a new job, you leave or you figure out some other way to legally stay in the United States, but you have to take some action within those 60 days.” Start looking now for new opportunities, she advised, as it will take new employers time to submit paperwork to U.S. Citizenship and Immigration Services.
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“The best-case scenario would be that this new company files your new change of employer petition and USCIS receives the paperwork on or before the 59th day since your last day of employment,” said Alcorn.
“It takes at least three weeks to prepare everything,” which means candidates and employers must move quickly as the days count down. “You probably need a signed offer around day 33,” she said.
A lot of the information Alcorn provided was just as relevant for hiring managers as it was for workers who’ve been laid off: any number of factors can combine to further complicate a process that’s already hard to puzzle out. For example, what happens to H-1B workers who get laid off while they’re out of the country? Can marriage actually solve the problem of immigration? (Definitely not!)
Because so many people have been laid off during a season when it’s traditionally hard to land a new position, I asked Alcorn whether she thought the layoffs would cause an exodus of tech talent from Silicon Valley.
“The American Dream is still really important to immigrants,” she said. “A lot of people are going to fight to find a way to stay here, even if it’s not necessarily in the Bay Area with the high cost of living. They still want what America represents and they’re going to reevaluate their relationship with Big Tech and the nature of work.”
Here are 3 tips to manage remote engineering teams
Image Credits Inok (opens a new window). / Getty Images
I once managed an office where the CEO and I were the only two people who weren’t on the engineering team. We occupied a pod within a co-working space so that we could all sit around one large table.
The developers rarely spoke outside of group lunches. They communicated mainly via Slack Jira, Jira, and GitHub. Today, the team works remotely.
Kuan Wei, an angel investor and entrepreneur, shared top tips for managing distributed engineering groups in a post to TC+. He also suggested that everyone should meet at least three hours each morning when they can chat.
“We expect Slack messages to be replied to within an hour, that everyone be reachable if we call them, and that we would work responsibly with our assigned partners,” he says.
To tax-free sell your multimillion-dollar startup, use IRS Code Section 1202.
Image Credits BrianAJackson (opens new window) / Getty Images
Vincent Aiello, tax attorney, says that although foundering teams typically choose an LLC or S-Corp corporate structure, those who plan to exit for more than $10 million should consider starting a Qualified Small Business C-Corporation.
Section 1202 of IRS Code provides that founders who hold QSB Stock for five years or more will be exempted from capital gains taxes after a sale.
“It constitutes a significant tax savings benefit for entrepreneurs and small business investors,” Aiello says.
“However, the effect of the exclusion ultimately depends on when the stock was acquired, the trade or business being operated, and various other factors.”
Revenue-based financing: A new approach to startup fundraising
Image Credits Cocoon/Getty Images (Image has not been modified)
Revenue-based financing is a way for early-stage startups to be less dependent upon investors, and thus allow them to keep more equity.
Many teams use these funds for short-term projects like marketing campaigns and sales, which usually have terms ranging from 12-24 month.
“Because the return on these activities may be higher than the cost of revenue-based financing, startups should use revenue-based financing to fund initiatives that will bear fruit soon,” advises Miguel Fernandez, CEO and co-founder of Capchase.
Pitch Deck Teardown: Syneroid’s $500K seed deck
Image Credits GPC Smart Tags (opens a new window).
Although stolen-vehicle recovery systems are available for decades now, losing a pet is more emotional.
According to Syneroid, a startup that makes smart tags, 10 million pets are lost each year in the United States, but “less than 30% are returned home.”
After raising a $500,000 seed round at a $3.9 million valuation, the company’s founders shared their 12-slide pitch deck with TechCrunch for a review. “No information has been redacted or omitted,” writes Haje Jan Kamps.