In May, tech layoffs hit their highest single-month total in years, with AI frequently cited as the cause, according to TechCrunch. This period saw a 25% drop in total hiring across large tech companies compared to 2019 levels. However, engineering roles experienced a much smaller decline, down only 11% compared to 2019 levels.
Amidst widespread tech layoffs, AI is often blamed for job losses across the sector. Yet, engineering jobs are proving to be the most resilient function within the tech industry.
While AI will undoubtedly reshape engineering roles, it appears more likely to drive a significant shift in demand and skill sets towards new, AI-centric opportunities rather than a net reduction in engineering positions.
Where Engineering Demand Endures and Grows
- Engineers comprised 55% of all new hires in 2025 across 12 'Tech Majors', a jump from 46% in 2019, according to TechCrunch.
- Early-stage startups collectively hired 7% more engineers in 2025 than in 2019, also reported by TechCrunch.
A redistribution of engineering talent towards emerging companies and specialized roles is occurring, even as overall hiring slows. Companies are reallocating resources to prioritize core product development and AI integration, making engineers a more central, albeit evolving, asset.
The Underlying Strength of Engineering Functions
SignalFire data indicates engineering was the most resilient job function in 2025, showing a smaller decline in hiring compared to overall tech hiring, as reported by TechCrunch. This resilience stems from the foundational and complex nature of engineering work, which often requires human creativity and problem-solving beyond current AI capabilities.
Companies blaming AI for layoffs might be masking a strategic shift. They are not eliminating engineers but rather reallocating resources to prioritize core product development and AI integration, making engineers a more central, albeit evolving, asset.
