SignalFire data suggests software engineering hiring is holding up despite AI

In short: New hiring data suggests software engineering jobs have stayed relatively strong, even as many tech layoffs have been blamed on AI.

What's going on

SignalFire, a venture capital firm that tracks job moves, says engineering was the most resilient job function in tech in 2025. The firm looked at hiring instead of layoffs, because layoffs are harder to measure in real time when people delay updating their job status.

In its latest “State of Talent Report,” SignalFire says overall hiring at large tech companies was down 25% compared to 2019. But engineering roles fell much less, down 11%.

SignalFire also found that engineers made up a bigger share of new hires at the biggest tech companies it tracks. Across 12 “Tech Majors,” engineers were 55% of all new hires in 2025, up from 46% in 2019. The list includes companies like Alphabet, Meta, Apple, Amazon, Microsoft, and others.

At early-stage startups, the pattern looked even stronger. SignalFire says these startups hired 7% more engineers in 2025 than in 2019.

This data cuts against a popular story that AI coding tools mean fewer engineers are needed. Asher Bantock, SignalFire’s head of research, said companies often explain layoffs by saying AI lets one engineer do the work of many, but the hiring numbers do not fully match that.

What to watch

This does not mean layoffs are over, or that every engineering job is safe. But it suggests AI may be acting more like a power tool than a replacement (like giving workers a faster drill, then building more things). Watch whether engineering stays a growing share of new hires in 2026, especially as more companies roll out AI coding assistants.

Source: TechCrunch AI