Why Are Professionals Leaving the Tech Industry?
This post draws on an informal survey of twenty tech executives, middle managers, and senior staff from engineering and go-to-market teams across public technology and emerging companies, and startups, examining the evolving dynamics in the tech industry and career paths within it. It took over three months to bring together.
The landscape has shifted since the Covid hiatus, with tech companies tightening budgets and implementing RIFs. Executives suggest the focus on social issues may wane post-election, though I'm skeptical it'll ease up immediately after November 5th.
Here are ten main reasons professionals are considering leaving the tech industry, based on research and cross-referenced feedback. I've ranked these factors by their frequency and importance, as agreed upon by multiple stakeholders.
Instability: The big tech career path is no longer a reliable option for long-term job security. Big tech companies (for example, Amazon, Google, Microsoft, and many others) once considered stable and dependable, have seen a shift, with layoffs have become more frequent—marking a notable departure from the past.
A Fair Wage: Compensation packages are a significant factor, especially as many stock prices have fallen and vesting equity grants reduce overall worker earnings. The combination of diminished compensation and long hours leads some to conclude that it's no longer worth staying in the industry.
A Tangle of Politics: There is a perception that small, medium and big tech companies are increasingly entangled in internal politics, where employees can be marginalized or affected by competing interests, rivalries, and personalities. This creates an environment where workers may feel pushed out for reasons unrelated to their performance.
DEI Atmospherics: All tech companies increasingly emphasize diversity, equity, and inclusion (DEI), shaping workplace culture but also sparking tensions. As employees navigate differing views on representation and fairness, some may feel sidelined not for performance, but due to evolving cultural expectations and the political dynamics of DEI efforts.
Age-ism: In tech, age bias is on the rise, with older workers often sidelined in favor of younger employees seen as more adaptable. Despite their experience, seasoned professionals feel marginalized as the industry prioritizes youth and new skills over longevity and expertise.
The Ceiling is in Sight: Growth opportunities in tech have narrowed, especially in large companies where engineers face limited paths to executive roles. Startups, with their evolving structures, offer more dynamic environments and clearer routes to leadership, making advancement more accessible.
Diminishing Payouts: Exit opportunities in tech—such as acquisitions and IPOs—have become scarce. Even with the prospects of an investment bubble in formation, market saturation and shifting conditions have reduced financial incentives, leading some professionals to seek more rewarding opportunities outside the industry.
Social Media has transformed both the nature of work and how we communicate on the job. Many people are not fans of Slack, and for some, social media feels like a narcissistic intrusion that's now embedded into their workday. One person even told me, "TikTok is only amusing when I’m sitting in the bathroom!" (I told him maybe it’s time for him to retire.)
Life-Work Balance: The demanding pace of tech is affecting both seasoned professionals and newcomers, often leading to burnout and stress. Long hours and constant pressure to innovate make it difficult to maintain personal well-being, prompting many to reconsider their priorities and seek better balance, with some opting to leave the industry altogether.
Startups were once seen as a career step, offering an escape from corporate culture or a path into venture capital. But the thousands of AI companies, the seeming disappearance of SaaS companies, funding changes, and in general, a plethora of subpar companies have shifted the landscape. Today’s startup world is far from the “hay day”era (whenever that was), and for true entrepreneurs, it’s a career with real ups and downs.
In conclusion, the tech industry is undergoing significant changes that are reshaping the career outlook for many professionals. From job insecurity and compensation challenges to internal politics and work-life balance concerns, these factors are driving talent to explore alternative industries or seek more fulfilling paths outside of tech.