Dismissed tech workers launching startups could win big in 2023

Tech giants are busy laying off workers and reducing office space. In the process, they may also have fueled the emergence of new entrepreneurs and startups—able to collaborate on suddenly cheap prime commercial land.

Investor Jason Calacanis predicted by All in podcast that the big business winners of 2023 will be “fired techies who choose to take control of their destiny and start companies.”

“I think the disaffected tech workers who get together in teams of two, three, or four—developers, product managers, people who actually build things—and start companies together can be more you’re successful, and they’re going to make incredible lemonade out of these lemons with these big technological breakthroughs,” he said earlier this month.

Some of the employees-turned-entrepreneurs might come for example from Meta, which is new laid off about 11,000 workers. the Facebook owner is also shedding office space, to reduce costs and because it accepted remote work. On Friday, it confirmed that it will sublease the Seattle office that it no longer needs, according to Seattle Times. This is also recent Abandoned real estate in New York City.

Subleased office space is often rented at a discount, which can allow startups that can’t afford it to relocate, says Colliers leasing expert Connor McClain in Seattle Times.

Meta is not the only one that has recently laid off workers and let go of real estate. So there is many more large technology companies, among them Microsoft, Salesforceand Twitter.

Salesforce recently announcing the removal—about 10% of its staff—while also showing it shed real estate. CEO Marc Benioff said in an all-hands meeting.

“This is a greater opportunity for cost restructuring, we want to get…somewhere between $3 to $5 billion from the business,” he said. “When we look at how we’re going to do that, real estate is going to be an important part of it.”

The company is located in San Francisco. A January 7 exchange between PayPal co-founder David Sacks and Tesla CEO Elon Musk highlighted the commercial real estate situation there. Sacks tweet“Recently offered an office in San Francisco (SOMA) at the same price as 2009. Yes.”

Musk replied, “It’s coming down.”

As it does, entrepreneurs emerging from tech layoffs can take advantage of cheaper real estate to house new businesses.

Of course, some startups may choose to save money by not renting commercial space and having everyone work from home. But like CEOs of big companies want Disney and Starbucks recently appeared—while insisting remote workers return to the office—there are clear business advantages to face-to-face collaboration.

As Disney CEO Bob Iger wrote the employees in a recent memo, “In a creative business like ours, nothing can replace the ability to connect, observe, and create with peers that comes from physical interaction.”

That may be true for tech entrepreneurs determined to make lemonade from discarded lemons.

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