🤖Tech Layoffs Reach New High in May; AI Cited as Top Reason
AI layoffs: The real story behind the numbers
TL;DR
May saw a record number of tech layoffs, with AI cited as the top reason. Despite this, engineering roles remain resilient and are growing faster than other job functions.
In May, tech layoffs reached their highest single-month total in years, with AI being the most-cited cause. Yet, engineering positions have proven more resilient: hiring for these roles dropped just 11% compared to pre-pandemic levels (2019), while overall tech hiring declined by 25%. Engineers now make up 55% of new hires across major tech companies in 2025, a significant jump from their 46% share in 2019. Early-stage startups have also increased engineering headcount by 7%, showing the continued demand for software developers despite industry-wide layoffs.
Key Points
May saw a record high of tech layoffs, with AI cited as the top reason for cuts
Engineering hiring dropped just 11% from pre-pandemic levels (2019), compared to a 25% decline in overall tech hiring
Engineers now make up 55% of new hires across major tech companies in 2025, up from 46% in 2019
Early-stage startups increased engineering headcount by 7% since 2019, showing continued demand for software developers
Nvidia CEO Jensen Huang argues that AI is making engineers busier rather than redundant
Why It Matters
Despite widespread layoffs in tech, engineering roles remain resilient. Engineers now make up a larger share of new hires across major companies and startups alike. This trend suggests that while AI may be disrupting other areas, it's actually boosting demand for skilled software developers.
Frequently Asked Questions
Why does this matter?
Despite widespread layoffs in tech, engineering roles remain resilient. Engineers now make up a larger share of new hires across major companies and startups alike. This trend suggests that while AI may be disrupting other areas, it's actually boosting demand for skilled software developers.
What happened?
May saw a record number of tech layoffs, with AI cited as the top reason. Despite this, engineering roles remain resilient and are growing faster than other job functions.
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