Layoffs hit Defense Tech

One SHARPE laid off ~40% last week

Over the past few years, several high profile private companies have reached unicorn status with valuations greater than $1 billion dollars, in the defense technology industry. These include Shield AI, Hawkeye 360, Anduril, Rebellion Defense, and Epirus. Additionally, Palantir is often considered a defense technology company that went public via IPO in the past few years.

Defense technology has seen a surge in private capital, driven by geopolitical considerations like a belligerent China, Russia’s invasion of Ukraine in 2014 and again in 2022, and similar events. Coupled with the large defense budgets (around $800 billion), it seemed that defense was safe from the economic downturn hitting the rest of the venture capital and tech spaces in 2022/2023.

However, several sources have revealed to me that Rebellion Defense conducted mass layoffs last week—up to 40% of its staff.

It’s a reminder that defense technology is connected to the broader macro trends in the economy and technology ecosystems.

It’s also a reminder that building anything is hard and entrepreneurs and investors must both make prudent decisions about capital allocation.

My thoughts are with those that have lost their jobs and it is my sincerest hope that other companies can make use of the incredible talent that these individuals possess.

If you’ve recently lost your job in defense tech or if you’re in a position hiring, please reach out at andrew.glenn1981@gmail.com and let me know. I’d love to help make connections.

And don’t be dissuaded. We must…

Keep building!

Andrew