Connect with us

Hi, what are you looking for?


Start-ups hit the brakes on hiring as costs soar

Cash-strapped start-ups are slowing recruitment and ripping out unnecessary costs this year as rising costs batter the bottom line, top investors said today.

Soaring inflation in the UK is squeezing venture-capital backed firms, which most often operate at a loss, causing bosses to slow down hiring and mull shifting some roles to contractors.

“Startups have never been quick to hire and expand but growing costs are creating more of a challenge,” said Stephen Page, boss of seed-stage investor SFC Capital

“Hiring is delayed and alternative employment methods are considered, such as outsourcing and subcontracting or working on a freelance basis to get things done.”

The latest inflation print in the UK hit by 9.4 per cent, with predictions that it could hit 13 per cent in October driven by a spike in energy prices which have ramped up costs for firms across the country.

In three months to June, a squeeze on expenses this year caused UK job listings to plunge  according to tech startup recruitment platform Otta, with 20 per cent fewer new job listings posted on the site and the amount of live roles falling  by 13 per cent.

Seb Wallace, investment director of Triple Point, said hiring was being hit by the squeeze on costs.

“Across the board, we are seeing startups be more purposeful with hiring. Required hires are still being made, but there is less room for mishires in a tight labour market where salaries are increasing,”

“Startups are therefore thinking carefully about who they bring on board and the value they can offer.”

Wallace said that salaries are and “always have been” the key early-stage cost pressure in UK, with soaring inflation now exacerbating the squeeze.

Read more:
Start-ups hit the brakes on hiring as costs soar

You May Also Like


The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...


After taking a breather in the week before this one, the Indian equity markets resumed their up move. The headline index continued with its...


It was supposed to be a debacle. As the Second World War drew to a close, the nation’s leading economists feared that, once the...


Small businesses are bringing forward their finance applications in order to beat expected further interest rate rises, according to new research. Four-in-ten (44%) SME...

Dislaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 | All Rights Reserved