SignalFire data shows engineering roles remain resilient despite AI

Tech layoffs reached their highest single-month total in years during May, and AI was the most-cited reason, according to Challenger, Gray & Christmas, an outplacement firm (a company that helps laid-off employees find new work). However, new research from venture firm SignalFire indicates that engineering was the most resilient job function in 2025. This finding directly challenges the prevailing narrative that artificial intelligence is driving mass layoffs in the engineering sector.

SignalFire analyzed hiring data across the sector to identify real-time workforce trends. While total hiring across large tech companies dropped 25% compared to 2019 levels, engineering roles proved far more durable.

The analysis of hiring statistics revealed:

• Engineering roles experienced an 11% decline in hiring compared to 2019, according to SignalFire’s analysis.
• Engineers made up 55% of all new hires in 2025 across 12 companies SignalFire classifies as Tech Majors—including Alphabet, Meta, Apple, Amazon, Microsoft, Netflix, Nvidia, Tesla, Uber, Airbnb, Block, and Stripe—up from 46% in 2019.
• Early-stage startups hired 7% more engineers in 2025 than they did in 2019.

This resilience aligns with arguments from industry leaders who suggest that AI increases productivity rather than replacing workers. Asher Bantock, SignalFire’s head of research, noted that while companies consistently cite AI as the rationale for layoffs, claiming one engineer can now do the work of many, ‘What we’re seeing on the ground is a little inconsistent with that.’ Bantock explained that engineers have become far more productive, leaving them with endless work to complete. Nvidia CEO Jensen Huang also rejected the allegation that AI is going to destroy all of the software engineering jobs. Speaking in April, Huang asserted that software engineers are busier than ever as they use agentic AI—AI systems capable of autonomous action—to write code, which pushes them to generate new ideas. This dynamic illustrates the Jevons paradox, an economic theory where increased efficiency leads to increased demand for a resource.

This trend persists despite high-profile warnings about automation. Anthropic CEO Dario Amodei previously warned that AI could wipe out half of all entry-level white-collar jobs and push unemployment as high as 20% within five years. However, Anthropic’s own head of economics, Peter McCrory, reported in March that there is at least no larger material difference in unemployment rates between workers using the company’s Claude model for automated tasks and those in roles less exposed to AI.

Why it matters

SignalFire’s analysis challenges the prevailing narrative that AI is driving mass layoffs in engineering, suggesting instead that engineering roles remain the most resilient job function in the tech sector.