Gen Z are digital natives raised in the era of YouTube, Tumblr, Instagram, and Facebook; and now, they’re some of the strongest AI users in their personal and professional lives. But Silicon Valley tech companies looking to make waves with AI aren’t holding onto the digitally savvy generation—instead, they’re actively boxing them out.
The percentage of young Gen Z employees between the ages of 21 and 25 has been cut in half at technology companies over the past two years, according to recent data from compensation management software business Pave with workforce data from more than 8,300 companies. These young workers accounted for 15% of the workforce at large public tech firms in January 2023. By August 2025, they only represented 6.8%. The situation isn’t pretty at big private tech companies, either—during that same time period, the proportion of early-career Gen Z employees dwindled from 9.3% to 6.8%.
Meanwhile, the average age of a worker at a tech company has risen dramatically over those two and a half years. Between January 2023 and July 2025, the average age of all employees at large public technology businesses rose from 34.3 years to 39.4 years—more than a five year difference. On the private side, the change was less drastic, with the typical age only increasing from 35.1 to 36.6 years old.
Millennials are currently ruling the tech industry and clinging to their roles as the economy is rocked by uncertainty due to tariffs, inflation increases living expenses, and AI swipes jobs. Meanwhile, entry-level Gen Zers are just hoping to get their careers off the ground.
“If you’re 35 or 40 years old, you’re pretty established in your career, you have skills that you know cannot yet be disrupted by AI,” Matt Schulman, founder and CEO of Pave, tells 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 a few reasons why tech company workforces are getting older and locking Gen Z out of jobs. One is that big companies—like Salesforce, Meta, and Microsoft—are becoming a lot more efficient thanks to the advent of AI. And despite their soaring trillion-dollar profits, they’re cutting employees at the bottom rungs in favor of automation. Entry-level jobs have also dwindled because of AI agents, and stalling promotions across many agencies looking to do more with less. Once technology companies weed out junior roles, occupied by Gen Zers, their workforces are bound to rise in age. And experts tell Fortune that spells a lot of trouble for innovation and long-term business stability.
Why Silicon Valley’s workforce is getting older—and what the long-term impacts are
The rapid disappearance of Gen Z at large technology companies is a dog whistle to what’s really going behind the scenes—AI is automating roles, from entry-level upwards. But what’s worrying about their presence disappearing faster at large public companies is the fact that early career pipelines are being completely disrupted. And they’re often the businesses with enough equity to invest in these Gen Z-targeted talent initiatives in the first place.
“Most public companies have fleshed out training programs that are squarely centered around new grad programs and university recruiting,” the Pave CEO, with early-career experience at Facebook and Microsoft, explains. “A company like Meta, their whole talent thesis was to go after universities, get the smart 21-year-olds, and then train them up. It’s just not as relevant as a paradigm for private companies.”
Jeri Doris, chief people officer at software company Justworks, tells Fortune workforce reductions have created a difficult barrier for Gen Z. Businesses are striving to do more with less, cutting entry-level roles and striving for AI automation to save on headcount costs. Mass firings have wiped whole corporate departments across the U.S., as companies announced more than 806,000 job cuts from January through the end of July this year, according to a report from Challenger, Gray & Christmas. It’s a 75% spike from the approximately 460,000 reductions announced through the first seven months of last year.
“Mass tech layoffs and a reduction in entry-level jobs means it’s harder for Gen Z to find open roles to apply for,” Doris explains. “On the flip side, Gen Z is prioritizing flexible working, job stability and work-life balance—something the tech industry may not be able to offer—so they’re applying to roles in different industries.”
As thousands of Gen Z are shut out making a name in the industry—even just getting a foot in the door—there could be serious long-term impacts. In the near future, many CEOs may espouse the money-saving potential of automating entry-level jobs. But looking 10 or 20 years ahead, when technology companies’ current millennial workers progress towards senior roles, there’s the question of who will take over their mid-level jobs. If Gen Z don’t have the opportunity to learn from the bottom-up, there presents a major issue of stifled innovation and a lack of talent ready to step into those positions.
Pave CEO Schulman uses sales roles as an example: “There’s a very linear, structured path that exists across like almost every tech company. You start doing the junior-level outbound sourcing work, then you become a mid-market account executive, then you become an enterprise seller. Enterprise sellers, in my opinion, will not be disrupted by AI anytime soon.”
“Enterprise sellers are still needed, but you’re removing the roles beneath them on that career hierarchy. How are we going to train the future of enterprise sellers, if they aren’t going through the conventional steps to get there?”
How Gen Z tech industry hopefuls can make the best of the situation
While the situation looks scary for Gen Zers looking to get a job at a tech firm, experts tell Fortune they should leverage the assets they have. Being new to the industry can even work to their advantage.
“[Companies] can hire a 21, 22-year-old that has not been brainwashed by years of corporate America. And instead, can just break the rules and leverage AI to a much greater degree without the hindrance of years of bias,” Schulman says. “I do think there is a new crop of these young ones that are just really leveraging AI maximally.”
To be a highly sought-after worker in this AI-automated era, that means being “manically” focused on all the new models that come out. Gen Z should study how to prompt chatbots extremely effectively, and even create bespoke models for their lines of work. Priya Rathod, workplace trends editor for LinkedIn, also tells Fortune that the young professionals shouldn’t give up on the tech industry. Instead, they should rethink their path within it—upskilling and taking on new career pathways can be a strong point of entry. Lucky for Gen Z, they don’t have to go back to college to get an upper-hand in the talent market.
“Building skills through certifications, gig work, and online communities can open doors,” Rathod recommends. “Roles in UX, AI ethics, cybersecurity, and product operations are promising entry points. Instead of waiting for opportunities, they should create them—through freelance projects, networking, and showcasing work online.”
“Employers are increasingly rethinking traditional degree requirements. For Gen Z, the right certifications or micro credentials can outweigh a lack of years on the resume. This helps them stay competitive even when entry level opportunities shrink.”
Good morning. As audit committees confront a rapidly expanding risk landscape, their role in corporate governance is being reshaped. Boards have often turned to current and former CFOs as independent directors, particularly for audit committees, because of their ability to translate complex operational and financial realities into effective oversight.
For example, this month, J. Michael Hansen, former EVP and CFO of Cintas Corporation, was appointed to the audit committee at Paychex. In July, Britt Vitalone, EVP and CFO of McKesson Corporation, was appointed to the audit committee of Align Technology’s board of directors. And in November, Catherine Birkett, CFO of GoCardless, was named chair of the audit and risk committee at Twinkl.
I attended the launch event of the Institute of Internal Auditors’ (IIA) Global Audit Committee Center last week in Washington, D.C., which addressed the challenges and opportunities facing audit committees. The center is designed to be a resource to strengthen the alliance between audit committees of boards and internal audit in a fast-changing risk environment. It offers research, webinars, and events and will ultimately add formal training programs.
“The center has a very strong core belief—well-informed, engaged, and well-supported audit committees are essential to corporate governance,” said Anthony Pugliese, president and CEO of the IIA.
Pugliese emphasized that board audit committees need to turn to internal audit to truly understand what is happening inside an organization. The event drew members from across the U.S. and around the world, including Canada, Europe, Africa, Latin America, and the Middle East, with Abdullah Alshebeili, CEO of the Saudi Authority of Internal Auditors, in attendance.
CFOs, in particular, work with internal audit on risk assessment, internal controls, and audit readiness, and they share information on financial processes and control issues. Finance chiefs also communicate regularly with the board’s audit committee.
AI and analytics reshape how audit committees see risk
During a panel discussion at the event, Ann Cohen, CFO of the IIA, said audit committees are increasingly using AI and advanced technology to connect different types of risk—third-party, financial, operational, cyber, and regulatory. They are using analytics to surface anomalies and emerging risks earlier, support proactive oversight, and run “what if” analyses before risks materialize. “It allows us to be more responsive to risks and provide more robust assurance to stakeholders,” she said.
A major focus is “everyday AI,” said Sarah Francis of the EY Center for Board Effectiveness. “I think audit committees are really also looking at, ‘How do we start to touch, feel, smell, and get used to the products that are out there?’” Directors, many of whom are active executives, are also thinking about how to deploy these tools effectively. “There have to be clear governance frameworks for AI and analytics,” she said, noting that prompts—and the people who craft them—matter. She highlighted the need for experts who can help frame broader questions around ethics within responsible AI frameworks.
Audit committees can and should engage with technology as they work toward a fully defined plan, commented Luke Whorton, executive search and leadership consultant at Spencer Stuart in the firm’s Financial Officer Practice. “How do you create a foundation, but one that’s agile and responsive, because it’s going to continue to change rapidly?” he asked.
“Audit committees need to be curious,” Cohen said. “They need to challenge management on their inputs, on their assumptions and their judgment, and on what they’ve embedded into their AI outputs.”
The committees that challenge assumptions and lean into technology, alongside strong partnerships with internal audit, could be well-positioned to safeguard trust in an uncertain world.
Linda LaGorga will step down as CFO of Entegris, Inc. (NASDAQ: ENTG), an advanced materials science provider, effective Feb. 28. Effective March 1. Mike Sauer, Entegris’ VP, controller and chief accounting officer, will assume the role of interim CFO, in addition to maintaining the responsibilities of his current role. LaGorga will serve as a senior advisor to Entegris through May 15. Entegris has initiated a search process for a permanent CFO with an executive search firm. Sauer has 37 years of experience in finance and accounting roles at Entegris.
Hugo Doetsch was appointed CFO of AuditBoard, a governance, risk, and compliance platform. Doetsch brings over two decades of financial leadership and strategic operating experience to AuditBoard. Most recently, he served as CFO at symplr, an enterprise health care operations software provider. Before that, he was CFO at NetDocuments, a cloud-based content management platform. Doetsch also held senior leadership roles at Ping Identity, where he assisted the company in a 2019 initial public offering.
Big Deal
The 2026 Fortune World’s Most Admired Companies list was released this morning. The annual ranking of corporate reputation is based on a poll of some 3,000 executives, directors, and analysts.
Apple has been No. 1 for 19 consecutive years. Amazon and Microsoft have filled out the top three for seven years in a row. Berkshire Hathaway (No. 6) and Alphabet (No. 8) have each been in the top 10 for well over a decade. Berkshire, the conglomerate nurtured by Warren Buffett, holds the distinction of having been on the All-Star list every single year since it launched in 1998; it shares that honor with Microsoft, Coca-Cola, Toyota Motor, and Johnson & Johnson.
Going deeper
“Who Gets Replaced by AI and Why?” is a report in Wharton’s business journal. New research from Wharton’s Pinar Yildirim explores how AI can impact employee motivation when it is implemented in the wrong part of a team’s workflow. The research addresses topics such as how managers should deploy AI capacity in teams and which positions are most vulnerable to being displaced by AI.
Overheard
“Working closely with David Ellison and this exceptional management team made the decision to resign from the board and jump in fully as CFO an easy one.”
—Dennis K. Cinelli wrote in a LinkedIn post on Tuesday regarding his appointment, effective Jan. 15, as CFO of Paramount, and his resignation from the company’s board. Most recently, Cinelli served as CFO of Scale AI, and he previously held senior finance and operational roles at Uber.
I love watching “Next Man Up” basketball, where the spotlight rotates unpredictably. One night it’s the bench guard dropping 30, the next it’s the role player posting a triple-double.
CapitalG’s Jill Chase—who captained her college basketball team at Williams College—says this logic actually applies to Alphabet’s growth firm. When I ask her what basketball team is most like CapitalG, she lists the WNBA’s Golden State Valkyries.
“Everybody has a different skill set, and everybody is willing to drop anything to help each other win,” said Chase. “It’s a different person every night who wins the game. And I think that’s really consistent with the way CapitalG is building its culture.”
For the first time since the firm was started in 2013, it’s promoting two general partners, Chase and Alex Nichols, Fortune has exclusively learned. Chase, who joined CapitalG in 2020 specifically with a thesis around AI, has backed Abridge, Baseten, Canva, LangChain, Physical Intelligence, and Rippling.
Nichols, meanwhile, joined CapitalG in 2018 as an associate and was promoted to partner just two years ago. He previously worked with managing partner Laela Sturdy on the firm’s investments in Duolingo, Stripe, and Whatnot, and recently led CapitalG’s investment in Zach Dell’s energy startup BasePower. At a moment where there’s mounting angst around data centers and what it will take to power them, Nichols has a surprising take on how AI will affect energy—that both batteries and solar are getting cheaper and better at something like Moore’s Law speed. Those twin cost curves, over time, should actually drive energy prices down.
“I’m actually very optimistic about the future of energy prices,” he said. “You look at the history of energy consumption versus GDP. And cheap energy means more production, more income, and means a higher standard of living.”
At a moment when venture is perhaps more competitive than ever—and there are certainly some solo GPs out there making their mark—there’s an argument that as lines blur between disciplines in an AI-ified world, venture is by necessity a team sport.
Sturdy—who’s been CapitalG’s managing partner since 2023 (and also captained her college basketball team)—and Chase both have clearly taken some learnings from their time on the court. Chase sees venture overall as becoming more team-oriented: “Historically, it used to be like ‘you made general partner, go out and win your deal.’ To me, that’s not the right way to be successful in venture ever.”
Sturdy adds that in basketball, like venture, “We have to look at the scoreboard every once in a while, and you have to get back up when you get crushed… And, of course, coming together is better than playing alone.”
Term Sheet Podcast…This week, I spoke with Exelon CEO Calvin Butler. As resource-hungry data centers continue to sprout across the country, many are questioning whether the nation’s utility network can keep pace with such large-scale demand. Butler says it can. Listen and watch here.
Joey Abrams curated the deals section of today’s newsletter.Subscribe here.
VENTURE CAPITAL
– humans&, a San Francisco-based AI lab, raised $480 million in seed funding. SVAngel and GeorgesHarik led the round and were joined by NVIDIA and others.
– Emergent, a San Francisco-based platform designed for AI software creation, raised $70 million in Series B funding. Khosla Ventures and SoftBank led the round and were joined by Prosus, Lightspeed, Together, and Y Combinator.
– Exciva, a Heidelberg, Germany-based developer of therapeutics designed for neuropsychiatric conditions, raised €51 million ($59 million) in Series B funding. Gimv and EQTLifeSciences led the round and were joined by FountainHealthcarePartners, LifeArcVentures, and others.
– Pomelo, a Buenos Aires, Argentina-based payments infrastructure company, raised $55 million in Series C funding. Kaszek and InsightPartners led the round and were joined by IndexVentures, AdamsStreetPartners, S32, and others.
– Cloover, a Berlin, Germany-based operating system designed for energy independence, raised $22 million in Series A funding. MMCVentures and QEDInvestors led the round and were joined by LowercarbonCapital, BNVTCapital, BoschVentures, and others.
– Statusphere, a Winter Park, Fla.-based influencer marketing technology platform, raised $18 million in Series A funding. VolitionCapital led the round and was joined by HearstLab, 1984Ventures, and HowWomenInvest.
– DominionDynamics, an Ottawa, Canada-based defense technology company, raised $21M CAD ($15.2M USD) in seed funding. Georgian led the round and was joined by BessemerVenturePartners and BritishColumbiaInvestmentManagementCorporation.
– Cosmos, a New York City-based image collection and discovery platform, raised $15 million in Series A funding. ShineCapital led the round and was joined by Matrix and others.
– Mave, a Toronto, Canada-based real estate AI company, raised $5 million in seed funding from StaircaseVentures, RelayVentures, N49P, and AlatePartners.
– Stilla, a Stockholm, Sweden-based developer of an AI designed to accommodate entire teams, raised $5 million in pre-seed funding. GeneralCatalyst led the round and was joined by others.
– AsymmetricSecurity, a London, U.K. and San Francisco-based cyber forensics company, raised $4.2 million in pre-seed funding. SusaVentures led the round and was joined by HalcyonVentures, OverlookVentures, and angel investors.
PRIVATE EQUITY
– ConnectWise, backed by ThomaBravo, acquired zofiQ, a Toronto, Ontario-based agentic AI technology company designed to automate high-service desk operations. Financial terms were not disclosed.
– GrantAvenueCapital acquired 21stCenturyHealthcare, a Tempe, Ariz.-based vitamins, minerals, and supplements company. Financial terms were not disclosed.
– HighlanderPartners acquired Tapatio, a Vernon, Calif.-based hot sauce brand. Financial terms were not disclosed.
– PlatinumEquity acquired CzarnowskiCollective, a Chicago, Ill.-based exhibit and events company. Financial terms were not disclosed.
– UnitedBuildingSolutions, backed by AEIndustrial, acquired DFWMechanicalGroup, a Wylie, Texas-based HVAC solutions company. Financial terms were not disclosed.
IPOS
– PicPay, a Sao Paolo, Brazil-based digital bank, now plans to raise up to $435.1 million in an offering of 22.9 million shares priced between $16 and $19 on the Nasdaq. The company posted $1.7 billion in revenue for the year ended September 30. J&F International and BancoOriginal back the company.
– EthosTechnologies, a San Francisco-based online life insurance provider, plans to raise up to $210 million in an offering of 10.5 million shares priced between $18 and $20. The company posted $344 million in revenue for the year ended Sept. 30. GeneralCatalyst, HeroicVentures, EricLantz, and others back the company.
FUNDS + FUNDS OF FUNDS
– BlueprintEquity, a La Jolla, Calif.-based growth equity firm, raised $333 million for its third fund focused on enterprise software, business-to-business, and tech-enabled services companies.
PEOPLE
– Area 15 Ventures, a Castle Pine, Colo.-based venture capital firm, promoted AdamContos to managing partner.
– BullCityVenturePartners, a Durham, N.C.-based venture capital firm, hired CarlyConnell as a principal.
– HarvestPartners, a New York City-based private equity firm, promoted LucasRodgers to partner, MatthewBruckmann and IanSingleton to principal, and ConnorScro to vice president on the private equity team.
– Wingman Growth Partners, a Greenwich, Conn.-based private equity firm, hired CheriReeve as CFO. She previously served as principal and CFO at AtlasHoldings.
Davos 2026: reading the signals, not the headlines | Fortune
Louisa Loran advises boards and leadership teams on transformation and long-term value creation and currently serves on the boards of Copenhagen Business School and CataCap Private Equity.At Google, Louisa launched a billion-dollar supply chain solutions business, doubled growth in a global industry vertical, and led strategic business transformation for the company’s largest customers in EMEA—working at the forefront of AI, data, and platform innovation. At Maersk, she co-authored the strategy that redefined the brand globally and doubled its share price, helping pivot the company from traditional shipping to integrated logistics. Her career began in the luxury and FMCG space with Moët Hennessy and Diageo, where she built iconic brands and led innovation at the intersection of heritage and digital transformation.
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