Illustration: Sarah Grillo/Axios

As the coronavirus continues to paralyze much of American daily life, startups that aren’t directly affected by the sudden shift in consumer behavior are now laying off employees too, worried that their products and services won't be in demand anytime soon.

Why it matters: Startups create a lot of jobs — in 2015 alone they created 2.5 million — and their pain could make a recovery from the virus downturn harder.

Driving the news: More young companies are announcing cutbacks, including buzzy retailers like luggage maker Away and software providers like Toast, which in February announced $400 million in new funding.

Others making cuts as the economic ripples gain momentum include:

Between the lines: The U.S. expected that restaurants, stores, hotels, airlines and other businesses would suffer, but now we’re seeing companies whose revenue depends on these businesses suffer.

  • If people aren't booking flights for vacations or work trips, they don’t need to buy luggage.
  • If restaurants are shuttering or offering takeout only, they’re not spending money on software and tools.
  • With most workers no longer reporting to offices right now, their employers aren’t ordering catered lunches or other office-related services.

Moreover, some startups are taking precautionary cuts as the fog over the economy makes it hard to predict the future.

  • Others, like direct-to-consumer lingerie-maker ThirdLove and beverage company Iris Nova, are trimming staff as consumers decrease their spending or shift it elsewhere.

The big picture: Similar dynamics are playing out beyond startup land. News companies — especially local newspapers — are cutting staff as local businesses stop purchasing ads. Travel agencies are taking a hit, as are ticketing and event businesses.

Go deeper: The coronavirus dip is worse than anything startups predicted

Go deeper

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PM prepares for "COVID election" as NZ marks 100 days of no community spread

New Zealand's Prime Minister Jacinda Ardern attends the launch of the Labour Party's election campaign in Auckland on Saturday. Photo: Michael Bradley/AFP via Getty Images

AUCKLAND, New Zealand — New Zealand has now gone 100 days with no detected community spread of COVID-19, the Ministry of Health confirmed in an emailed statement Sunday.

Why It Matters: New Zealanders are going to the polls on Sept. 19. Prime Minister Jacinda Ardern has been widely praised for her leadership that saw NZ lock down hard for several weeks before all domestic restrictions were lifted in June. She sees her government's response to and recovery from the coronavirus outbreak as key to her Labour Party being re-elected.

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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Australian officials in Victoria announced another 19 deaths from COVID-19 on Monday morning local time, breaking the state and national record set the previous day of 17. Victoria also reported 322 new cases — the lowest in 13 days.

The big picture: Australia was on track to suppress the virus in May, but cases have been spiking in Victoria in recent weeks, where a state of disaster was declared last week, enabling officials to introduce restrictions including a night-time curfew in state capital Melbourne.

Updated Aug 9, 2020 - Politics & Policy

Ohio Gov. Mike DeWine again tests negative for coronavirus after positive result

Photo: Justin Merriman/Getty Images

Ohio Gov. Mike DeWine (R) tested negative for COVID-19 for a second time after initially testing positive last week, he announced Saturday.

Why it matters: 73-year-old DeWine was set to meet President Trump Thursday on the tarmac at an airport in Cleveland and was tested as part of standard protocol.