Tech companies' risks aren't just going to go away, especially when it comes to people. (Credit: Nottenaj/Adobe Stock)

Big tech is facing more challenges than ever before, forcing companies to adjust their priorities amid a challenging fundraising market. Just a few years ago, in booming funding times, jobs were plentiful and employees left their companies en masse — the "great resignation." Companies across verticals struggled to fill positions as prospective employees weighed the many options in front of them. Today, things could not be more different.

The technology industry has seen more than 86,000 layoffs in 2024 alone. At Embroker, our recent Tech Risk Index report found 44% of tech companies are struggling with employee retention at the entry and executive levels. Which raises the question: is tech losing its appeal for workers?

People, prices, problems

It's clear there is significant concern over cash flow within the industry: 59% of tech leaders report struggling with the rising cost of business, despite the fact that only 20% report prioritizing funding in 2024. Following the rising cost of business, tech companies' top threats included inflation (54%) and rising interest rates (37%). While these financial concerns won't go away immediately, further interest rate cuts should help in due time. Tech companies are expected to see a variety of upswings, from an IPO market rebound and increased M&A activity to an increase in pre-deal investor activity, above record-breaking 2021 levels.