Despite decades of initiatives aimed at fostering gender equality and diversity in the tech industry, women’s career growth seems to have hit a wall in 2025. It’s a paradox: we’ve seen a surge in the number of women entering the tech workforce, but the climb to leadership roles is becoming increasingly difficult. 

Women now represent nearly 28% of the global tech workforce, yet only 17% of leadership positions are held by women. This disconnect between representation and leadership roles speaks volumes about the barriers still in place for women in tech.

In 2025, the stakes are higher. Tech has become central to every industry and is very active, being used in everything from healthcare to finance. The talent pool should be brimming with diverse leadership, yet women find themselves struggling to ascend, despite the promise of equality. 

Let’s understand why the career ladder for women in tech seems to be disappearing, and what can be done to rebuild it.

The Impact of Layoffs and Budget Cuts on Women’s Career Growth

The tech industry is no stranger to economic volatility. In 2025, this volatility is manifesting in massive layoffs and budget cuts. 

Economic Pressures on Tech Companies

The global economic climate has forced companies to make hard choices, and in many cases, the workforce is feeling the strain. Women, particularly those in mid-level and non-technical roles, are disproportionately impacted by these cuts. 

According to a recent survey, layoffs in the tech sector have affected 46.64% of women, even though they represent just 28% of the total workforce. This data underscores how vulnerable women are when companies start trimming their workforce.

Impact on Career Development and Mobility

While layoffs hit everyone, they disproportionately harm women’s ability to develop their careers. For women who survive these cuts, the consequences can be just as devastating: fewer opportunities for professional development, networking, and leadership roles. 

Budget cuts often mean reduced funding for mentorship programs, leadership training, and internal mobility—key aspects of career progression. As a result, women are finding fewer avenues to rise within their organizations, making it harder for them to stay engaged and motivated.

Long-Term Consequences for Career Progression

The long-term effects of these layoffs and budget cuts are already becoming apparent. In many tech companies, those who remain are tasked with heavier workloads without the added support that would normally come with career development programs. 

Women, often already balancing multiple responsibilities, find themselves sidelined, their career trajectories stalled at best or permanently stunted at worst. The financial strain also means fewer resources dedicated to creating pathways for women to break through into senior leadership positions. In an industry already criticized for its lack of gender diversity at the top, this could push back any meaningful progress for years.

The Backlash Against DEI (Diversity, Equity, and Inclusion) Programs

Diversity, Equity, and Inclusion (DEI) programs were once considered a game-changer in leveling the playing field for women in tech. These programs focused on diversifying hiring practices, eliminating unconscious bias, and creating mentorship and sponsorship opportunities for women. 

However, as the economic landscape shifted, many tech companies found themselves scaling back—or even eliminating—DEI efforts. A lot  of tech companies have reduced their DEI budgets or merged them with corporate social responsibility (CSR) initiatives in 2025, a sign that DEI initiatives are no longer seen as a priority.

How the Backlash Affects Women in Tech

This scaling back of DEI initiatives has real-world consequences for women’s career growth. With fewer DEI programs in place, women find themselves without the support they once had. The absence of mentorship, formal sponsorship, and targeted leadership development makes it harder for women to break into senior leadership roles. 

More than just a policy change, this shift erodes the structural support women need to thrive in tech. As companies backtrack on DEI, the risk is clear: women lose the resources necessary to continue advancing in their careers.

Real-World Implications

The reduction of DEI programs leads to fewer women having the same opportunities to network, find mentors, or be exposed to leadership opportunities. In essence, women lose out on the very mechanisms that allow them to rise through the ranks. It’s about both fairness and business growth. 

When women are excluded from leadership pipelines, companies limit their own potential for innovation and growth. For tech companies that want to remain competitive in 2025, maintaining and strengthening DEI programs isn’t just a moral imperative; it’s a business necessity.

The Decline of Mentorship and Sponsorship Opportunities

Career advancement in tech is not only about technical skills. It’s about being seen, heard, and advocated for. This is where mentorship and sponsorship come into play. Mentorship helps guide women through their careers by providing advice and feedback. 

Sponsorship, on the other hand, takes this a step further by actively advocating for women when leadership opportunities arise. Both are essential to climbing the career ladder in any industry, and tech is no different.

Decline in Formal and Informal Networks

However, many organizations are scaling back their formal mentorship programs due to economic constraints. At the same time, informal networks—often male-dominated—remain more difficult for women to access, further sidelining them in the pursuit of leadership roles. 

Consequences of the Decline

Without adequate mentorship and sponsorship, women are left to navigate their careers without advocates who can help them gain visibility or access to high-impact projects. While many men benefit from informal networks that create visibility in the workplace, women are often left outside of these crucial networks. This lack of support creates a cycle where women’s contributions go unnoticed, and their paths to promotion are obscured.

The Gender Gap in Tech Leadership

The gender gap in tech leadership is one of the most pressing challenges facing the industry. In 2023, women held only 10.4% of C-suite positions in Fortune 500 tech companies, a stark contrast to their representation in the broader workforce.

Why Women Are Underrepresented in Leadership

This underrepresentation isn’t due to a lack of talent. Women in tech often possess the technical skills and qualifications to lead. The issue lies in systemic barriers like unconscious bias, rigid corporate structures, and outdated perceptions of leadership. 

Tech companies tend to favor men for leadership roles, often due to the expectation that “ideal leaders” are available 24/7, a work culture that doesn’t align with the realities faced by many women, particularly those with caregiving responsibilities.

A Broken Leadership Ladder

Women are consistently passed over for leadership roles, despite being just as qualified. This is especially true in the tech sector, where decision-making often leans heavily on informal networks and sponsorships that women have less access to. The result is a broken leadership pipeline that leaves many women stuck in mid-level positions, unable to move up despite their qualifications.

Mid-Career Attrition and the Impact of Personal and Professional Factors

One of the most significant reasons why women’s career progression slows is mid-career attrition. Research shows that women, especially those in their 30s and 40s, are more likely to leave the tech industry or plateau in their careers compared to their male counterparts. 

A report notes that nearly 56% of women leave tech roles mid-career, often due to a combination of lack of opportunities for advancement and an inability to balance work with personal life.

The “Motherhood Penalty” and Other Barriers

The “motherhood penalty” is a real and pressing issue for many women in tech. When women take maternity leave, they are often penalized in terms of pay and career progression. Many women are also faced with the challenge of balancing demanding careers with family responsibilities, and tech companies often fail to provide the flexible work arrangements needed to retain these talented individuals. For many women, the lack of work-life balance forces them to either leave the workforce or step back from career advancement.

Lack of Flexibility in Tech Workplaces

Despite the rise of flexible work arrangements in many industries, tech companies are still slow to adopt policies that support work-life balance. In fact, many women in the industry report feeling that their employers don’t offer enough flexibility, leading to higher attrition rates among mid-career women. This lack of flexibility is a major factor in women’s decision to leave tech, and it significantly stymies their career progression.

Strategies to Overcome Career Stagnation for Women in Tech

For Companies—Building a More Inclusive Future

Tech companies must take a proactive approach to support women’s career growth.

  • Invest in DEI: Strengthen DEI programs to ensure that women have access to mentorship, sponsorship, and leadership opportunities.
  • Mentorship and Sponsorship Programs: Create structured programs that actively support women’s advancement, focusing on both mentorship and sponsorship.
  • Work-Life Balance Policies: Offer flexible work arrangements to ensure that women with caregiving responsibilities can still thrive in their careers.

For Women—Taking Control of Career Growth

Women must also take an active role in their career advancement:

  • Seek Out Mentorship and Sponsorship: Be proactive in seeking mentorship and sponsorship from senior leaders who can advocate for your career.
  • Upskill Continuously: Stay current with the latest technologies and developments in the field by taking part in reskilling programs.
  • Build Your Network: Expand your network beyond your immediate team to find allies and advocates who can help you rise in your career.

Encouraging Collective Action

The roadblocks preventing women from advancing in tech are not insurmountable, but they do require collective action. Companies must recommit to supporting women’s professional development, and women themselves must continue to seek out the resources and networks that will help them break through the barriers to leadership. 

Together, we can rebuild the ladder for women in tech, making sure that the future of tech leadership is more diverse, inclusive, and supportive.