B2B Startups Face Steeper Layoffs Than B2C in 2023 Despite Smaller Workforce Reductions
Tomasz Tunguz analyzes how layoff patterns between B2B and B2C startups have inverted in 2023, with B2B companies now reducing headcount more aggressively than B2C for the first time since 2020. While both segments cut approximately 15% of staff on average, B2B companies face unique pressures from customer downsizing and prolonged sales cycles. The shift reflects structural differences in business model volatility and revenue stability between the two segments.
Metrics in this report
15%
mean
B2B and B2C combined
21,256count
total
since 2020
275$b
total
since 2020
17,109count
total
since 2020
229$b
total
since 2020
8.8multiplier
ratio
2020 layoff comparison
3.8multiplier
ratio
2021 layoff comparison
6.9multiplier
ratio
2022 layoff comparison
1.6multiplier
ratio
2023 year-to-date comparison
77$m
mean
since 2020
75$m
mean
since 2020
25%
minimum
businesses that folded after major layoffs
50%
minimum threshold
average staff reduction during Covid
30%
p75
B2B and B2C combined