AI Was Supposed to Kill Engineering Jobs, But New Data Shows They Are the Most Resilient
Despite fears that artificial intelligence would replace software engineers, recent data from SignalFire indicates that engineering roles are the most resilient in the tech industry.
AI Threats to Engineering Jobs: Reality or Myth?
While tech layoffs hit a multi-year high in May, with AI being the most commonly cited reason according to outplacement firm Challenger, Gray & Christmas, venture capital firm SignalFire's research suggests that software engineers are not as easily replaceable as predicted.
The Data Speaks for Itself
SignalFire's analysis, which tracked the careers of millions of employees across more than 80 million companies, reveals that engineering was the most resilient job function in 2025. While total hiring at large tech companies dropped 25% compared to 2019 levels, engineering roles saw only an 11% decline.
Engineers More in Demand Than Ever
SignalFire's latest "State of Talent Report" shows that in 2025, engineers comprised 55% of all new hires at the 12 companies classified as "Tech Majors" — Alphabet, Meta, Apple, Amazon, Microsoft, Netflix, Nvidia, Tesla, Uber, Airbnb, Block, and Stripe. This is a significant increase from 2019, when engineers represented only 46% of new recruits.
The trend is even more pronounced at early-stage startups, which collectively hired 7% more engineers in 2025 than they did in 2019.
Contradictory Messages from Industry Leaders
Although Anthropic CEO Dario Amodei warned last year that AI could wipe out half of all entry-level white-collar jobs, the company's head of economics, Peter McCrory, told TechCrunch in March that he had not yet seen any significant AI-driven effects on the workforce. Nvidia CEO Jensen Huang outright rejected the theory that AI will replace engineers, stating that software engineers are busier than ever.
Jevons Paradox and Unlimited Work
This situation echoes the Jevons paradox — greater efficiency doesn't reduce demand for a resource; it increases it because work expands to fill new capacity. As SignalFire's head of research, Asher Bantock, noted, engineers have become more productive, and there is endless work for them to do.
