Aurélien Fleurot edited by Wassila Belhacine 08:02, May 31, 2022

In Europe, more and more young start-ups have had to resort to redundancy plans to cope with financial difficulties.

Thus, Getir, a Turkish grocery and food delivery company, has to let go of 4,000 employees.

The galloping inflation caused an economic explosion for these companies.

What's happening in the world of start-ups?

In recent weeks, we have seen more and more layoffs in these companies in Europe.

After impressive fundraising, the soufflé falls.

France is still spared for the time being, but in several European countries, financial difficulties have prompted several young companies to part with part of their employees.

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"They spend a lot more than they earn"

During the month of May, 60 social plans took place in the tech sector, compared to barely 40 for the whole of 2021. For some companies, the fall is as brutal as the progression had been vertiginous.

With the post-Covid euphoria, the valuations of young companies have soared.

However, the current galloping inflation has caused a backlash. 

"The fall in tech stocks is explained by the strong rise that there has been in the last two years. The common point is that these are companies that spend a lot of money to finance their growth and, on the side, they lose a lot of money. They spend a lot more than they earn. Before, we looked a lot at the growth of turnover. Today, we are going to look more at performance indicators, profitability, "explains Jérôme Marin, founder of the Café Tech newsletter. 

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These start-ups serving local communities

In Getir, 4,000 employees made redundant 

The express shopping delivery sector is particularly affected.

Thus, the German company Gorillaz intends to part with 300 employees.

For the Turkish start-up Getir, these are 4,000 employees thanked overnight.

In France, start-ups are not affected by social plans.

The very recent fundraisers seem to protect the young tricolor shoots.

However, caution is advised because even the "unicorns", these companies valued at more than a billion dollars, can be fragile.