AIToday

Engineering jobs prove unexpectedly resilient despite AI adoption, with hiring data showing engineers now make up a larger share of new hires at major tech companies than five years ago.

TechCrunch AI1d ago5 min read
Engineering jobs prove unexpectedly resilient despite AI adoption, with hiring data showing engineers now make up a larger share of new hires at major tech companies than five years ago.

Key takeaway

Despite widespread fears that artificial intelligence would eliminate software engineering jobs, hiring data from venture firm SignalFire shows the opposite is happening. Engineering roles at major tech companies declined only 11% compared to a 25% drop in overall hiring, and engineers now represent a larger share of new hires than they did in 2019. The pattern suggests AI tools are making engineers more productive and generating more work for them, not replacing them.

Summaries like this, in your inbox every morning.

Sign up free →

3 Key Points

  • What happened

    Research firm SignalFire analyzed hiring across more than 80 million companies and found that while total hiring at large tech companies dropped 25% compared to 2019 levels, engineering roles declined only 11%. Engineers comprised 55% of all new hires in 2025 at the 12 major tech companies SignalFire tracked, up from 46% in 2019. Early-stage startups hired 7% more engineers in 2025 than in 2019.

  • Why it matters

    The data contradicts expectations that AI-powered coding tools would eliminate engineering jobs first. Instead of layoffs reducing engineering headcount, the numbers show engineers remain in high demand. This suggests that rather than replacing engineers, AI tools are making them more productive and creating more work—a pattern economists call the Jevons paradox, where efficiency increases demand for a resource instead of reducing it.

  • What to watch

    Nvidia CEO Jensen Huang stated that since all engineers at Nvidia are now using agentic AI (self-directed AI agents), software engineers are busier than ever, constantly generating new ideas for AI to execute. This reflects the real-time dynamic: AI is expanding the scope of engineering work rather than shrinking the job market.

FAQ

Which companies did SignalFire study?
SignalFire analyzed hiring data across more than 80 million companies, with detailed tracking of the 12 companies it classifies as 'Tech Majors': Alphabet, Meta, Apple, Amazon, Microsoft, Netflix, Nvidia, Tesla, Uber, Airbnb, Block, and Stripe.
How much did engineering hiring decline compared to other roles?
Engineering roles saw an 11% decline in hiring at large tech companies compared to 2019 levels, whereas total hiring across those companies dropped 25%.
Has AI actually eliminated any engineering jobs so far?
Anthropic's head of economics, Peter McCrory, told TechCrunch in March that he had not yet seen any significant AI-driven effects on the workforce, noting no material difference in unemployment rates between workers heavily exposed to AI tools and those in roles less exposed to AI.

Discussion

No discussion yet for this article

Stay ahead with AI news

Get curated AI news from 200+ sources delivered daily to your inbox. Free to use.

Get Started Free

Free · takes 30 seconds · unsubscribe anytime

5 minutes a day. The AI essentials.

200+ sources · Email / LINE / Slack

Get it free →