SignalFire Says Engineers Took 55% of Big Tech Hires in 2025 as AI Layoff Fears Grew
Updated
Updated · TechCrunch · Jun 24
SignalFire Says Engineers Took 55% of Big Tech Hires in 2025 as AI Layoff Fears Grew
2 articles · Updated · TechCrunch · Jun 24
Summary
SignalFire found engineering was tech’s most resilient job function in 2025, with engineers making up 55% of new hires at 12 major tech companies, up from 46% in 2019.
Hiring data drove that conclusion: overall recruiting at large tech companies was still 25% below 2019 levels, but engineering hiring was down only 11%, a much smaller drop than the broader market.
Early-stage startups reinforced the pattern, hiring 7% more engineers in 2025 than in 2019, which SignalFire argues is inconsistent with claims that AI is already replacing coders.
The findings cut against a wave of AI-linked layoff rhetoric after May logged the highest monthly tech layoff total in years, even as Anthropic’s economics chief said in March he had not seen material AI-driven labor-market effects.
Nvidia CEO Jensen Huang has made a similar case, saying agentic AI has made software engineers more productive and busier, echoing the idea that efficiency gains can lift demand rather than shrink it.
Is AI creating a new engineering elite while quietly making entry-level tech jobs obsolete?
With AI automating workflows, are engineers becoming strategic thinkers or just overseers of a machine?
The 2025-2026 Tech Talent Paradox: Surging Engineer Demand, AI-Driven Layoffs, and the Future of Entry-Level Roles
Overview
The tech talent landscape in 2025-2026 is marked by a slowdown in overall hiring and significant layoffs, yet engineering roles remain in high demand. While many tech jobs are being cut and hiring activity is at its lowest in years, companies are still growing their engineering teams, showing that AI is creating new needs rather than replacing engineers. However, this strong demand does not extend to entry-level positions, as AI is making junior roles less essential. As a result, companies are focusing on experienced engineers and core technical roles, even as the broader workforce contracts.