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Y Combinator, one of the world’s leading accelerators and Silicon Valley giant, has published a letter advising tech companies to plan for a market turnaround. The letter, entitled “Economic Retraction”, recommends companies to cut costs and increase their “runway” (how long the startup has until its money runs out and needs a new contribution/investment) in the next 30 days.

YC’s recommendations come against a background of changing markets, with the value of several tech companies significantly decreasing, including giants like Shopify and Netflix. According to the accelerator, the weak performance of the public market of technology companies will significantly impact venture capital investment, affecting early-stage startups.

In Brazil, startups such as QuintoAndar, Loft and Facily announced layoffs and adjusted their growth strategies in view of the scenario of lower liquidity and high interest rates. In Europe, fintech Klarna reported laying off 10% of its workforce, shortly after announcing it would lower its market value to raise more capital.