Are Tech Companies Hiring Executives in 2025?
Short answer: Not as many. Carta data shows that executive hires have been cut in half — from 8% to 4% of total new hires between 2018 and 2025.
The shift reflects how AI, efficiency mandates, and capital constraints are redefining leadership hiring across tech.
According to Carta’s 2025 startup compensation report, companies valued over $100M (roughly Series B stage, or $10–15M ARR) are hiring fewer executives and managers, while expanding their base of individual contributors.
Horizontal line chart showing hiring trends from 2018 to 2025 of IC, Manager and Exec
What Does the Data Show About Hiring Trends?
Executives: 8% → 4% of new hires (2018–2025)
Managers: 46% → 39% for companies under $100M; 50% → 40% for those above $100M
Individual contributors: 46% → 57% (<$100M) and 42% → 56% (>$100M)
CEO takeaway: The balance of hiring has shifted from leadership-heavy to execution-heavy teams. Companies are prioritizing builders and AI-augmented roles over management layers.
Is Overall Company Headcount Declining?
Yes. Carta’s data from 2021–2025 shows that total headcount has dropped across seed, Series A, and Series B companies — remaining flat only at Series C.
At the Series A stage, for example, average SaaS headcount fell from 26.3 to 16.2 between 2020 and 2025.
Industry breakdown: Headcount is down in SaaS, fintech, healthcare, and consumer sectors, while hardware and biotech have grown modestly.
Insight: Tech companies are scaling revenue faster than headcount — signaling higher efficiency and greater AI leverage per employee.
Chart showing average headcount by stage for software companies from 2021 to 2025
Chart showing headcount on day of Series A across industries
Why Are Tech Companies Hiring Fewer Executives?
There are three main reasons driving this decline:
Shift from growth-at-all-costs to efficient growth.
Since 2022, SaaS spending has cooled, and boards now emphasize efficiency metrics such as the Rule of 40 and revenue per headcount.Funding constraints.
SaaS companies in the $20M–$50M ARR range are growing slower than investors expect, limiting their ability to add senior leadership.AI-native productivity.
Many emerging AI-first startups are small, focused on product-market fit, and can operate efficiently without large executive teams.
Community insight: Among marketing and revenue leaders, unemployment and underemployment are high. Even top CMOs, CROs, and CHROs are finding fewer open roles as companies rely on leaner teams and automation.
Stage Typical Executive Roles
Seed CEO, VP Engineering
Series A VP Marketing, VP Sales
Series B VP Customer Success, VP Product
Series C VP Finance, VP People
Series D VP Partnerships/Alliances
Rule of thumb: Expect a span of control around 1 executive per 8–10 direct reports, flexing by company stage and complexity.
Early-stage startups tend to run leaner; later-stage firms broaden their leadership bench.
Hiring insight: Founders often mis-sequence marketing hires — prioritizing growth marketers before strategy-oriented product or content marketers.
A senior marketing leader helps set the right order of operations and optimize ROI across channels.
How Should CEOs Fill Leadership Gaps in 2025?
Fractional and interim executives are emerging as cost-effective, high-impact alternatives to full-time hires.
Fractional VP/CMO: Ideal for Series A–B companies needing strategy without full-time cost. Typically engaged 2–3 days per week.
Interim executives: Bridge leadership transitions to avoid losing momentum.
Compensation: Lower total cost than full-time hires, higher pro-rated cash pay, no equity dilution.
CEO takeaway: Use fractional leadership to drive strategy, manage teams, and maintain growth velocity while conserving runway.
What Does This Mean for Tech Leadership Going Forward?
The future of tech leadership will look hybrid — smaller full-time teams, augmented by fractional executives and AI-powered execution layers.
Expect:
More agile, cross-functional orgs
Leaner management structures
Fewer layers and faster decision-making
Higher ROI per executive leader
Final insight: Companies that align leadership hiring with efficiency metrics and AI leverage will outperform peers still operating under pre-2023 growth models.
Frequently Asked Questions
Are tech companies hiring executives in 2025?
No — Carta’s data shows executive hires dropped from 8% to 4% since 2018. Companies are focusing on individual contributors and AI-enhanced efficiency instead.
Why are companies hiring fewer executives?
Due to efficiency mandates, slower SaaS growth, and the rise of AI-native startups that operate with smaller leadership teams.
What is a fractional executive?
A senior leader who works part-time (2–3 days a week) to provide strategic direction and management at a lower total cost than a full-time executive.
Author’s note:
This analysis is based on Carta’s H1 2025 Startup Compensation Report and community insights from the Bright Growth network of marketing and revenue leaders.
