In a year marked by record tech layoffs, with AI frequently cited as the cause, engineering roles paradoxically emerged as the most resilient job function across major tech companies. This situation created a significant churn across the tech workforce, leaving many to question the stability of their positions. The human impact of these reductions rippled through communities, even as a core segment of the industry demonstrated unexpected strength.
Tech layoffs hit their highest single month total in years in May, with AI cited as the most common reason. This trend, however, contrasts sharply with the hiring patterns observed for technical talent; engineering roles saw the smallest decline in hiring and increased as a percentage of new hires, according to TechCrunch.
Companies are not simply replacing engineers with AI, but rather re-scoping and enhancing engineering roles, leading to a more productive, product-centric, and AI-augmented workforce. My experience as a former CTO suggests this is a critical evolution, not a simple culling, driving a wedge between those who adapt and those who risk becoming irrelevant.
The Paradox: Layoffs vs. Engineering Resilience
- Highest Single Month Layoffs — Tech layoffs hit their highest single month total in years in May, with AI cited as the most common reason, according to TechCrunch.
- 25% Drop in Hiring — While total hiring across large tech companies dropped 25% compared to 2019, engineering roles saw a decline of only 11%, according to TechCrunch.
- Most Resilient Job Function — SignalFire's analysis of millions of employees suggests engineering was the most resilient job function in 2025, according to TechCrunch.
While AI is indeed impacting the tech workforce, its effect on engineering is more nuanced than a simple reduction, suggesting a re-prioritization of these roles. While some positions are vulnerable to automation, the core demand for problem-solving and system-building remains strong, albeit with a new set of expectations for efficiency and integration.
