Silicon Valley Bank: As the news of the collapse of Silicon Valley Bank, a choice institution for tech startups and venture capitalists, many employers in the tech space, including Silicon Valley Bank itself, went from a position of new staff intake to one where there were gradual mass layoffs.
Reports now reveal that in January before Silicon Valley Bank became the second-largest bank in U.S. history to fail, this led to the bank being taken over by federal regulators, as it now stands as the largest U.S. bank to fail since the 2008 global financial crisis. The bank had quietly laid off some employees as tech firms in its backyard also slashed jobs, the layoff had affected between 100 to 120 employees, according to an internal email seen by NBC News.
Though the January layoffs, represented just about 1.4% of Silicon Valley Bank‘s 8,500 employees, the layoffs appeared to be concentrated in roles dealing in nonclient-facing capacities. Staff underscored the bank’s efforts to trim and cut costs during a time when companies in its backyard were cutting jobs, too. There were new rounds of 2023 staff layoffs at Facebook’s Parent Company Meta, leading to Meta trimming down about 11,000 staff who worked for the company.
The latest layoffs come after Twitter announced that it was eliminating approximately ten percent of its remaining staff of its workforce, or 200 jobs, in the single largest round of cuts in the company this year.
Silicon Valley Bank to Staff
In January, emails were sent by Silicon Valley Bank’s human resources officer telling staff that change and uncertainty in the economic outlook were to blame for the job cuts then. The email also explained that effort to slow spending over the past several months had not been enough and these reductions are necessary.
Encouraging Employees From Quitting
The FDIC has finally appointed former Fannie Mae CEO Tim Mayopoulous as the resurrected Silicon Valley Bank’s new CEO. The company clarified that employees would be going back to normal pay and benefits. Employees of the bank at the time of failure were paid bonuses the day the FDIC took over, with a retention bonus due in April. To keep Silicon Valley Bank employees from quitting, the FDIC promised to pay 1.5 times their normal rates for 45 days to ensure an orderly wind-down of the bank. “We are open for business. Therefore we are reverting to our regular pay rates,” said an email, seen by NBC News, from Silicon Valley Bank’s human resources team. The company has now continued to hire in other corners of the company to fill certain roles.
Frequently Asked Questions
What caused the Silicon Valley Bank to collapse?
Many experts believe that the collapse of Silicon Valley Bank was caused by a lack of diversification seen in other classic banks, as many of Silicon Valley Bank to collapse‘s depositors were startup companies, where many customers can withdraw their deposits simultaneously.
Is the U.S. government assisting Silicon Valley Bank?
The FDIC appointed former Fannie Mae CEO Tim Mayopoulous as the resurrected Silicon Valley Bank’s new CEO. The U.S. government had also tried to assure Silicon Valley Bank customers that the Biden Administration would guarantee all customers’ deposits, to the extent of going above the federal deposit insurance of $250,000 per depositor.
Are there Companies Affected by Silicon Valley Bank Collapse?
Yes, companies like HighJobLink Limited, ROBLOX, BUZZFEED, ACUITYADS HOLDINGS INC, APPLOVIN Corp, and Roku among others.
Is Africa Affected by Silicon Valley Bank Collapse?
With the Silicon Valley Bank’s tentacle spreading as far as Africa as well, it is not a surprise that about $1.2 billion in funding for Nigerian technology startups may be threatened and job losses will be imminent as the ripple effects of the collapse of Silicon Valley Bank (SVB), the 16th largest bank in the United States of America (USA), begins to unfold, HighJobLink Limited has learned.