AI Was Supposed to Kill Engineering Jobs, but New Data Suggests They’re the Most Resilient

AI Summary

SignalFire’s latest hiring analysis shows that despite AI‑driven layoff narratives, software engineers are the most resilient job function in tech, with only an 11% hiring decline and a growing share of new hires. Industry leaders argue AI is augmenting rather than replacing engineering talent, pointing to a likely expansion of demand.

A new SignalFire report challenges the prevailing narrative that AI will decimate software engineering roles, showing that engineers are actually the most resilient function in tech hiring for 2025.

AI‑Cited Layoffs vs. Engineering Hiring Resilience

Tech layoffs peaked in May, with AI listed as the top reason by outplacement firm Challenger, Gray & Christmas. Yet SignalFire’s head of research Asher Bantock notes a mismatch between the rhetoric and on‑ground hiring trends.

Hiring Numbers Reveal a Modest 11% Drop for Engineers

Total hiring across large tech firms fell 25% from 2019 levels.
Engineering roles declined only 11% in the same period.
Engineers accounted for 55% of new hires in 2025 at the 12 “Tech Majors,” up from 46% in 2019.
Early‑stage startups added 7% more engineers in 2025 than in 2019.

Why Engineers Remain In‑Demand Amid AI Hype

Industry leaders, including Nvidia CEO Jensen Huang, argue that AI tools boost productivity rather than replace talent. The Jevons paradox suggests that greater efficiency expands the scope of work, creating “endless work” for engineers.

What the Next Wave of AI‑Augmented Engineering Might Look Like

As AI agents generate code instantly, engineers are pushed toward higher‑level problem solving and idea generation. Bantock predicts continued growth in engineering headcount as firms leverage AI to accelerate product development.