The graying workforce of Silicon Valley: generation Z staff cut in two in technological companies while the average age increases by 5 years

The percentage of young employees of generation Z aged 21 to 25 has been reduced in two in technological companies in the past two years, according to recent data from the activity of remuneration management software, with work data of more than 8,300 companies. These young workers represented 15% of the workforce in large public technological companies in January 2023. In August 2025, they only represented 6.8%. The situation is not enough in large private technology companies either – during this same period, the proportion of Gen Z employees at the start of their career rose from 9.3% to 6.8%.

Meanwhile, the average age of a technological business worker has increased considerably during these two and a half years. Between January 2023 and July 2025, the average age of all employees in large public technology companies increased from 34.3 years to 39.4 years – more than one difference over five years. On the private side, the change was less drastic, the typical age from 35.1 to 36.6 years.

The millennials are currently directing the technology industry and clinging to their roles, because the economy is shaken by uncertainty due to prices, inflation increases subsistence costs and AI which slides the jobs. Meanwhile, the entry -level generation of range of range simply hopes to take off their career.

“If you are 35 or 40 years old, you are quite established in your career, you have skills that you know cannot yet be disturbed by AI,” says Matt Schulman, founder and CEO of Pave, says Fortune. “There is still a lot of human judgment when you operate at the more senior level … If you are a 22 -year -old child who was a Junkie Excel or something, then it can be disrupted. It is therefore almost a story of two cities.”

Schulman highlights some reasons for which the enrollment of technological companies are aging and locking the Z generation of jobs. One is that large companies – like Salesforce, Meta and Microsoft – become much more effective thanks to the advent of AI. And despite their benefits of billions of dollars, they cut employees to the lower levels in favor of automation. Entry -level jobs have also decreased due to AI agents, and block promotions in many agencies that seek to do more with less. Once technological companies have eliminated junior roles, occupied by the Zers generation, their workforce is held to increase in age. And the experts say Fortune This expresses a lot of problems for innovation and the stability of long -term businesses.

Why the workforce of Silicon Valley is aging – and what are the long -term impacts

The rapid disappearance of generation Z in large technological companies is a dog dogs with what is really happening behind the scenes – has automated roles, entry -level training. But what is worried about the disappearance of their presence faster in large public enterprises is the fact that pipelines at the start of their career are completely disturbed. And they are often companies with enough equity to invest in these targeted talent initiatives in generation Z in the first place.

“Most public enterprises have expanded training programs that are downright focused on new qualified programs and university recruitment,” explains the CEO CEO, with an experience at the start of his career on Facebook and Microsoft. “A company like Meta, all their talented thesis was to go after universities, to obtain young people aged 21, then to train them. It is simply not as relevant as a paradigm for private companies. ”

Jeri Doris, Director of Chief Persons of the JustWorks software company, says Fortune Reductions of the workforce have created a difficult obstacle for companies of Gen Z. strive to do more with less, to reduce the entry-level roles and to endeavor to automate AI to save on the costs of the workforce. Mass shooting has suffered whole business departments across the United States, while companies have announced more than 806,000 job cuts from January to the end of July of this year, according to a Challenger report, Gray & Christmas. This is a peak of 75% of around 460,000 discounts announced in the first seven months of last year.

“Mass technical layoffs and a reduction in entry -level work mean that it is more difficult for generation Z to find roles open to apply,” explains Doris. “On the other hand, generation Z favors flexible work, employment stability and balance between professional and private life – something that the technological industry may not be able to offer – they therefore apply to roles in different industries.”

While thousands of Gen Zz are excluded by making a name in the industry – even in the foot of the door – there could be serious long -term impacts. In the near future, many CEOs could marry the potential for saving money from the automation of entry -level jobs. But looking at 10 or 20 years in advance, when current workers in the millennium of technological companies progress to management positions, there is the question of which will take control of their intermediate level jobs. If generation Z does not have the opportunity to learn from the elevator, it presents a major problem of muffled innovation and a lack of talent ready to penetrate these positions.

The CEO of Pave, Schulman, uses sales roles as an example: “There is a very linear and structured path which exists like almost all technological companies. You start to do the outgoing junior supply work, then you become an average account manager, then you become a business seller.

“Business sellers are always necessary, but you remove the roles below this career hierarchy. How are we going to train the future of corporate sellers, if they do not go through the conventional steps to get there? ”

How hopes of the technological industry of the Z generation can make the most of the situation

While the situation seems frightening for the Gen Zers who seek to find a job in a technology business, experts say Fortune They should take advantage of the assets they have. Being new in industry can even work to their advantage.

“(Companies) can hire a 22 -year -old man who has not been washed by the brain by America corporate years. And instead, can simply break the rules and take advantage of AI to a large measure without obtaining years of bias, “explains Schulman. “I think there is a new harvest of these young people who really get from AI to the maximum.”

To be a much sought after worker in this A-Automed era, this means that being “manically” focused on all the new models that come out. The Z generation should study how to cause chatbots extremely effectively and even create tailor -made models for their work lines. Priya Rathod, publisher of working trends for LinkedIn, also says Fortune That young professionals should not abandon the technology industry. Instead, they should rethink their path within it – knowing and adopting new career paths can be a strong entrance point. Fortunately for Gen Z, they do not have to return to university to obtain a higher hand on the talent market.

“Strengthening skills through certifications, concert works and online communities can open doors,” recommends Rathod. “The roles in the UX, the ethics of AI, cybersecurity and product operations are promising entry points. Instead of waiting for opportunities, they should create them – through independent projects, networking and online work presentation. ”

“Employers are increasingly rethinking traditional diploma requirements. For generation Z, good certifications or identification micro-information can prevail over a lack of years on the CV.