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Gen Z once viewed tech jobs like Microsoft, Meta, and Salesforce as a guaranteed path to six-figure pay, but AI is now cutting that path short, as automation reshapes early career opportunities.
The share of 21- to 25-year-olds employed at large public tech companies has halved over two years, according to data from Pave, which analyzed workforce figures from more than 8,300 firms. In January 2023, early-career employees represented 15% of the workforce at major public tech firms. By August 2025, the figure had collapsed to 6.8%. At big private companies, the decline was from 9.3% to 6.8% in the same period.
At the same time, the average age of tech workers has climbed steeply. Between January 2023 and July 2025, the average age at large public firms jumped from 34.3 to 39.4 years. At private companies, it rose from 35.1 to 36.6.
Millennials hold on as Gen Z locked out
Millennials now dominate the sector, holding steady while economic uncertainty and AI disruption cut opportunities for those starting out. “If you’re 35 or 40 years old, you’re pretty established in your career,” said Matt Schulman, founder and CEO of Pave tolf Fortune. “There’s still a lot of human judgment when you’re operating at the more senior level. If you’re a 22-year-old that used to be an Excel junkie or something, then that can be disrupted. So it’s almost a tale of two cities.”
Schulman points to AI efficiency as one of the forces pushing out younger staff. Entry-level roles have diminished, and promotions are stalling as companies cut costs despite strong profits.
“Once technology companies weed out junior roles, occupied by Gen Zers, their workforces are bound to rise in age,” he observed. “How are we going to train the future of enterprise sellers, if they aren’t going through the conventional steps to get there?”.
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Why deskless environments reveal structural gaps in HR service delivery
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Barriers mount, but pathways still exist
Mass layoffs have intensified the challenge. From January through July this year, US companies announced more than 806,000 job cuts, a 75% increase from the 460,000 in the same period last year, according to Challenger, Gray & Christmas.
“Mass tech layoffs and a reduction in entry-level jobs means it’s harder for Gen Z to find open roles,” said Jeri Doris, chief people officer at Justworks. She added that many are seeking alternatives in industries that offer stability, flexibility, and balance.
Still, experts say opportunities remain. Schulman argued that fresh graduates can leverage AI “to a much greater degree without the hindrance of years of bias.” LinkedIn’s Priya Rathod urged young professionals to pursue certifications, gig work, and online communities to build skills in areas such as UX, AI ethics, and cybersecurity.
“Employers are increasingly rethinking traditional degree requirements,” Rathod said. “For Gen Z, the right certifications or micro credentials can outweigh a lack of years on the resume.”
