Tech CEOs Are Leaving Their Jobs At Increasing Rates
Tech CEOs are leaving their posts an increasing rate, according to new research.
The study from Challenger, Gray, & Christmas shows that 181 chief executives left their jobs in the technology sector between January and October 2019. That’s 46 percent higher than the same period of 2018.
The overall trend is being pinned to the overall industry’s changing landscape. New technologies are making workplaces more efficient, which may impact the way people work, according to the study’s authors.
“In addition to potential staffing changes, there may be differences within the leadership and board ranks regarding exactly which path a company will take. In fact, we have tracked the highest number of chief executive officer changes in the tech sector on record this year,” the report read.
Technology CEOs Exit Jobs: Historic Data
The last time this many CEOs left technology companies was in 2006 when 163 CEOs headed for the collective exit door.
That shifting landscape appears to be having an impact on rank and file at tech employees as well. In 2018, the industry cut more than 13,200 jobs. This year, that number was nearly five times higher with over 63,500 jobs lost.
The majority of those cuts – in all industries – are coming from regions with major technology hubs like California, New York, Massachusetts, Texas, and Illinois, according to the study. They also come at a time when some politicians are calling to break up of big tech companies to combat alleged anti-competitive practices. That regulatory uncertainty could play a part as businesses look for leaders to tackle these specific issues, Andrew Challenger, Vice President of the firm, told CNBC.
Fortunately, the research doesn’t paint a completely bleak picture. As the authors point out, the technology industry has announced plans to hire more than 21,100 workers. We’ll be waiting to see what the new year brings.