- There are 10% fewer job openings in software compared to the same period last year.
- A new study has found that software companies are hiring more – and less – compared to last year.
- Gitlab is hiring, while Asana is hiring less. See where other companies are at.
Software companies are feeling the brunt of the economic downturn and falling stock market, which has prompted hiring freezes and job cuts across the tech industry.
Robinhood announced in early August that it would cut more than 20% of its workforce, and reports showed nearly 30,000 tech workers lost their jobs in July. But a new RBC Capital Markets report from July identified several companies that are doing better than at the start of the year and showing strong month-over-month growth.
Analyst Matthew Hedberg notes that “management teams seem to be reducing their cost structures” as investors wait to get to grips with the current volatile market.
Hedberg’s analyst team looked at the number of software-related job openings at companies in July compared to their number at the start of the year and compared it to the change in the stock price of the respective company during the same period.
An outlier, Clearwater Analytics Holdings, was one of the best performing companies with a 156% increase in job postings, while Asana was the worst of the 74 companies included in RBC Capital Markets, with a drop of 76.6% of job offers.
Xometry Inc., DoubleVerify Holdings Inc., Magnite Inc., Pubmatic and Gitlab are also showing more jobs than at the start of the year, although each of the companies’ stock prices are down more than 25% since the start of the year. beginning of the year.
The companies that saw the biggest declines in job postings — Uipath, Rapid7, Hubspot, Smartsheet, Duck Creek Technologies and Nutanix — each cut their available job postings by more than half, while still suffering drops more drastic changes in share prices. Each company’s price has fallen more than 40% from the start of the year.
Twilio, a 2008 recession start-up success story, also took a hit as its share price plummeted to nearly a third of what it was at the start of the year. It also recorded one of the largest month-over-month declines in job postings.
Analytics firm Mizuho Securities USA also released a report saying SaaS companies have underperformed this year due to a combination of geopolitical, inflation and interest rate issues.
But Mizuho chief executive Siti Panigrahi and equity research associate Alexander Kim were more upbeat about Twilio in their report, predicting that the company’s focus on engagement customer will help increase demand for its products and services.
The team analyzed the business models of various companies and judged them based on their potential performance for the rest of the year and next year amid various unpredictable economic factors.
They predicted that customer-facing software will perform well due to the number of companies that have focused on investment in applications to generate revenue, while back-office expenses and cloud communications will experience less. success in the near future.