Toptal’s post-acquisition layoffs raise questions about the security of traditional employment vs. freelancing
Toptal, a platform known for connecting businesses with freelance talent, has laid off 70% of its engineering team. This news comes despite two acquisitions earlier this year – software developer VironIT and marketing freelancer platform Growth Creative. The layoffs, which affected staff in the U.S., Ukraine, and Poland, were reported by The Information and corroborated by former employee posts on LinkedIn
VironIT is a software specialising in custom software solutions and IT consulting services. Combine that with Growth Creative’s talent network of freelance software developers, designers, finance experts, product managers, and project managers and you can see where that expansion may have been more about acquiring the tech and freelancer contact book, than building Toptal’s in-house numbers.
Toptal’s latest cuts aren’t an isolated event but part of a broader trend within the tech sector. Tech layoffs have plagued the industry throughout 2024, with companies like Dell, Intel, and Tesla also making substantial cuts as AI investments reshape the course of business and everyday tasks. However, Toptal’s situation is particularly ironic. A company that champions freelancing and remote work as the future of employment now finds its salaried employees grappling with sudden job loss, raising questions about whether full-time employment in the tech sector truly offers more stability than freelancing.
Historically, the freelance recruitment platform has raised very little venture capital—reportedly only around $1.5 million—which is an anomaly in the startup space. This lean operation was often seen as a strength, enabling the business to remain profitable. However, their recent acquisitions and aggressive expansion have led to restructuring and unfortunate layoffs.
For those impacted by these layoffs, the irony is hard to miss. Working for a platform that connects freelancers with opportunities, these former employees may now be joining the very freelancers they once helped. This situation underscores a growing realisation in the workforce—freelancing, once considered risky, may offer just as much, if not more, stability than traditional salaried roles, especially in a volatile industry like tech. As companies and their investors urge them to become leaner models and rely more on contract workers, the notion of job security continues to evolve, with many professionals now weighing freelancing as a viable, and perhaps more secure, career path.
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