Experienced Software Engineers Remain in Demand as AI-Driven Layoffs Target Junior Talent, SignalFire Report Finds

If you’ve been hearing the buzz about an “AI coding apocalypse,” the latest data from SignalFire suggests the story is a bit more nuanced. The venture‑capital firm’s newest analysis, released early this year, shows that seasoned software engineers are still among the safest jobs in tech.

SignalFire’s AI platform has been watching the pulse of the labor market for over 650 million people in 80 million organizations on LinkedIn. By tracking profile updates—rather than layoffs or retirements, which people rarely report in real time—the firm pieced together hiring trends across the industry.

The study zeroes in on 12 of the world’s largest tech giants—Google, Apple, Amazon, Meta, Microsoft, Netflix, Nvidia, Uber, Tesla, OpenAI, Anthropic, and DeepMind—plus a swath of early‑stage startups. The headline numbers are striking: in 2025, hiring at those 12 firms fell 25 % compared with 2019, yet software engineers still made up 55 % of all new hires, up from 46 % in 2019. Startups, too, added 7 % more engineers than in 2019.

But the picture looks very different for entry‑level roles. Junior software engineering positions were cut by 65 % at the big names and by a staggering 76 % at startups, relative to 2019.

These trends sit on top of a wave of layoffs that has reshaped the tech workforce. Meta recently announced the elimination of 8,000 jobs—roughly 10 % of its staff—while restructuring to fund its AI infrastructure. Oracle has cut about 21,000 positions over the past year as it rolls out AI across its cloud and database offerings. Fiverr, the freelance marketplace, trimmed 250 employees, or 30 %, as it shifts to an “AI‑first” operating model.

The layoffs have been linked to the rapid adoption of AI tools that can write code, generate documentation, and automate routine engineering tasks. While the headline “AI coding apocalypse” has captured headlines, SignalFire’s data tells a different story: the demand for experienced engineers who can design, architect, and manage complex systems remains high, while the demand for junior talent—who often perform repetitive coding tasks—has plummeted.

SignalFire notes that the share of new hires that are software engineers has increased even as overall hiring has contracted. That shift indicates companies are prioritising roles that require deep technical expertise and problem‑solving skills, rather than routine coding work.

Early‑stage startups, meanwhile, continue to hire software engineers at a rate slightly above 2019 levels. These firms are investing in talent that can build and scale new products, underscoring that experienced engineering skills are still in demand.

In short, the AI revolution is reshaping the tech labor market, but it is not eliminating the need for seasoned software engineers. Companies are reallocating resources toward AI infrastructure and higher‑level engineering roles, while junior positions are being consolidated or automated. The current trend points to a continued emphasis on experienced talent, with a corresponding decline in entry‑level hiring.

The next few months will likely see further adjustments as firms refine their AI strategies and the market responds to the changing demand for engineering talent. For now, the data indicates that experienced software engineers are not facing the existential threat that some commentators have warned about.