{"id":19919,"date":"2023-07-24T19:59:37","date_gmt":"2023-07-25T02:59:37","guid":{"rendered":"https:\/\/essential.construction\/news\/contech-firms-feel-the-sting-of-tech-industry-woes\/"},"modified":"2023-07-24T19:59:38","modified_gmt":"2023-07-25T02:59:38","slug":"contech-firms-feel-the-sting-of-tech-industry-woes","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/contech-firms-feel-the-sting-of-tech-industry-woes\/","title":{"rendered":"Contech firms feel the sting of tech industry woes"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Brief:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<ul>\n<li><span><span><span><span><span><span>Despite signs <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/apnews.com\/article\/economy-growth-gdp-inflation-consumers-federal-reserve-14560ad6bbb6b5322f9bccffc918ac04\" target=\"_blank\"><span><span><span><span><span><span><span><span>the broader economy is improving<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, as the Associated Press reported, and <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/demand-rises-contech-firms-funding-software-construction\/654168\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>seed capital still entering<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> the sector, the storm that the tech industry weathered this year has not been kind to the sector, including contech firms.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Startup tracker Crunchbase\u2019s layoff database paints a grim picture for the tech industry this year. As of July 24, U.S.-based tech companies <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/news.crunchbase.com\/startups\/tech-layoffs\/\" target=\"_blank\">laid off more than 155,589 workers<\/a><span><span><span><span><span><span>\u00a0in the space in 2023, with a little over four months to go in the year, compared to more than 93,000 tech layoffs throughout all of 2022. Contech firms that cut workers this year include Autodesk, <span>Matterport<\/span> and Built Technologies, according to the database.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Commerce giant Amazon led layoffs with 16,080 cuts, followed by tech conglomerate Alphabet, the parent company of Google, with 12,000 layoffs, and software stalwart Microsoft, which cut 11,158 jobs.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Insight:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>This year, a combination of a broader uncertain economy \u2014\u00a0brought on by the Covid-19 pandemic and the Russian invasion of Ukraine \u2014\u00a0and a flash-in-the-pan crisis triggered by <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/Silicon-valley-bank-svb-fallout-enterprise-tech-vendor-risk\/646185\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>the collapse of Silicon Valley Bank<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in March have battered contech firms.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>While contech startups have continued to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/demand-rises-contech-firms-funding-software-construction\/654168\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>attract funding and seed capital<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, they are not isolated from the effects of the broader economy.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>RJ Pittman, CEO of Matterport, a firm that specializes in digital twins, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/matterport.com\/blog\/accelerating-toward-a-data-driven-future\" target=\"_blank\"><span><span><span><span><span><span><span><span>wrote in a July 11<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> blog post that the firm was \u201creorganizing to streamline business operations.\u201d The company laid off 30% of its total workforce, or 170 people, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/investors.matterport.com\/static-files\/9d9ec717-3e67-410b-92cb-8cb27218fbe4\" target=\"_blank\"><span><span><span><span><span><span><span><span>according to a Securities and Exchange Commission filing<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIn recent years, our ability to adapt to rapidly changing global market conditions has been vital to our continued success,\u201d Pittman wrote in the blog.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>That move came after design software giant <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/autodesk-lays-off-250-employees-amid-tech-industry-crunch\/642169\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>Autodesk laid off 2% of its workforce<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, or about 250 people, in February. The company told Construction Dive the layoffs did not impact its Construction Solutions division, which includes the Autodesk Construction Cloud.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Construction fintech firm Built Technologies declined to comment on its layoffs, which were the company\u2019s second round this year, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.nashvillepost.com\/business\/technology\/built-makes-second-round-of-layoffs-this-year\/article_7e899552-2000-11ee-8965-47697ce53ccd.html\" target=\"_blank\"><span><span><span><span><span><span><span><span>according to the Nashville Post<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. The company cut 8% of its workforce in February.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The problems tech companies, including contech firms, grapple with lead back to their clients\u2019 customers.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Amazon, for instance, has pulled back on its office construction, and <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/amazon-delays-groundbreaking-phase-2-second-headquarters-hq2\/644116\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>delayed the groundbreaking<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> of the second phase of HQ2, the company\u2019s second U.S. headquarters located in Arlington, Virginia.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In construction, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/weak-office-hotel-sectors-construction-planning-dodge-momentum-index-may\/652412\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>the flagging office sector<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> continues to drag on the industry. The Dodge Momentum Index, a benchmark that measures nonresidential building planning, tumbled another 2.5% in June, its fourth consecutive fall.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In addition to tech firms, some contractors have also laid off staff.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Last week, Lendlease announced that it <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/lendlease-layoffs-worldwide-staff-contractor-developer\/688223\/\" target=\"_blank\">cut 10% of staff worldwide<\/a><span><span><span><span><span><span>, or about 740 workers.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In addition, Colorado Springs, Colorado, contractor Cusi Construction shut down operations in June, leaving 100 workers short on owed payments, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.fox21news.com\/news\/local\/mass-layoff-100-colorado-springs-employees-unpaid-for-final-weeks\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>according to local Colorado outlet Fox 21<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>.<\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/contech-firms-feel-sting-tech-industry-woes-layoffs\/688729\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Dive Brief: Despite signs the broader economy is improving, as the Associated Press reported, and seed capital still entering &#8230; <a title=\"Contech firms feel the sting of tech industry woes\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/contech-firms-feel-the-sting-of-tech-industry-woes\/\" aria-label=\"Read more about Contech firms feel the sting of tech industry woes\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":19920,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-19919","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/19919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=19919"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/19919\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media\/19920"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=19919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=19919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=19919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}