Mark Cuban Says Laid-Off Tech Workers Should Start Businesses—Here’s Why He’s Right

Mark Cuban isn’t one to mince words. His latest take?

If you’ve been laid off from a tech job, now’s the perfect time to start your own thing.

With the recent GSA 18F layoffs, a wave of skilled engineers and designers suddenly find themselves in limbo. Cuban sees this as fuel for innovation, urging them to form consulting firms or launch new products.

He’s not just throwing out feel-good advice—this is how some of the biggest startups in history began.

Layoffs create an inflection point. You can scramble for another job in a volatile market, or you can use this moment to build something for yourself.

Many of the best businesses are born out of necessity, not luxury.

Let’s break down why Cuban’s advice makes sense—and how you can use it to your advantage.

Why Laid-Off Tech Workers Are in a Unique Position

The knee-jerk reaction to getting laid off is panic. That’s fair. But if you step back, you’ll see that you’re actually in a better position to start a business than you might think.

1. You already have the skills. The market didn’t fire you—budget cuts did. Your expertise is still valuable. Companies still need software built, UX improved, and products maintained.
2. You have insider knowledge. You’ve seen firsthand what works, what’s broken, and what businesses need. That’s a massive advantage when figuring out what to build or where to consult.
3. Your network is ready-made. Ex-colleagues, old bosses, and clients could be your first customers. If you’ve built a reputation, you can leverage it for contracts or partnerships.

There’s a reason so many layoffs lead to the formation of new companies. Necessity forces people to rethink their options.

Instead of looking for a paycheck, you start looking for problems you can solve.

The Proof: Layoffs Have Fueled Some of the Biggest Startups

If you think launching a business after a layoff is risky, look at the companies that started the same way:

• WhatsApp – Co-founder Brian Acton was rejected by Facebook and Twitter before deciding to build his own messaging app. Years later, Facebook bought WhatsApp for $19 billion.
• Netflix – Co-founder Reed Hastings started Netflix after getting hit with a $40 late fee at Blockbuster. The frustration sparked a billion-dollar idea.
• Slack – Stewart Butterfield’s gaming startup wasn’t working out, so he pivoted to focus on the internal messaging tool they had built. That tool became Slack.

These aren’t anomalies. They’re proof that layoffs and setbacks can be the beginning, not the end.

What’s the Play? Turning a Layoff into a Business

Let’s say you’re considering Cuban’s advice. What’s next? Here’s a practical way to get started:

1. Identify a Problem You Can Solve

Every good business starts with a problem. Ask yourself:

• What pain points did you see in your last job?
• What complaints did clients, colleagues, or managers have repeatedly?
• What’s a task that businesses struggle with but have to do anyway?

The best ideas come from lived experience. You’ve already been in the trenches—now it’s about packaging that knowledge into something valuable.

2. Start Small (Freelance or Consult First)

Before jumping into a full-fledged startup, test the waters with consulting or freelancing. You don’t need investors—just one client willing to pay.

• Offer a small, specific service that solves a real pain point.
• Use your network—reach out to old connections, former colleagues, or LinkedIn groups.
• Get early traction—if people pay for your expertise, you’re onto something.

3. Leverage Layoff Perks

Many layoffs come with severance pay and extended health benefits. This runway buys you time. Use it wisely:

• File for unemployment if eligible—this cushions the early months.
• Negotiate severance (if you haven’t already)—some companies will offer more if you ask.
• Use health benefits before they expire—medical costs can be a major financial burden for bootstrapped founders.

4. Think Long-Term: From Freelancer to Founder

Freelancing and consulting can be the gateway to a real business. If you start seeing demand, ask:

• Can I productize this service? (e.g., a SaaS tool that automates what you do manually)
• Can I hire contractors or build a team? (scaling beyond a one-person operation)
• Can I transition from services to a product? (offering software, templates, or digital products)

It’s not about jumping straight to a billion-dollar valuation. It’s about starting small, proving demand, and scaling smartly.

Cuban’s Right—The Market Isn’t

The job market is unpredictable. Startups are freezing hiring, and big tech keeps trimming the fat. But here’s the thing: the demand for solutions hasn’t gone away.

Mark Cuban’s advice isn’t just optimism—it’s backed by history. Layoffs do lead to innovation, but only for those willing to take the leap.

So, the real question isn’t “Should I start something?”—it’s “What’s stopping me?”