--- title: "Software Engineer Layoff Statistics 2026: Companies, Roles, AI Impact" date: 2026-05-20 author: "Sofia Ramirez" featured_image: "https://sqmagazine.co.uk/wp-content/uploads/2026/04/software-engineer-layoff-statistics.jpg" categories: - name: "Technology" url: "/technology.md" tags: - name: "Statistics" url: "/tag/statistics.md" --- # Software Engineer Layoff Statistics 2026: Companies, Roles, AI Impact Software developers aged 22 to 25 saw employment fall nearly **20%** from their late 2022 peak by July 2025, according to Stanford Digital Economy Lab research using ADP payroll data. That single cohort decline reframes the entire narrative around tech layoffs, which most observers describe as a broad correction across all engineering levels. The data points compiled below cover aggregate tech layoff totals from Layoffs.fyi, company-level cuts at Microsoft, Amazon, Meta, and Salesforce, seniority-level employment shifts from Stanford and Indeed Hiring Lab, AI-automation drivers cited by chief executives on the record, and the BLS Occupational Outlook projections for software developers through 2034. Readers tracking the broader workforce picture can also review our [AI job loss data](https://sqmagazine.co.uk/ai-job-loss-statistics/) for cross-occupation context. ## Key Takeaways - **Stanford** found early-career workers in AI-exposed jobs saw a **13%** relative employment decline since late 2022, with software developers aged 22 to 25 falling nearly **20%** from peak. - **Microsoft** cut roughly **6,000** jobs in May 2025 and another **9,000** in July 2025, totaling over **15,000** across the year. - **Amazon** announced **14,000** corporate role eliminations in late October 2025, recording an estimated **$1.8 billion** in severance costs. - **Salesforce** reduced support headcount from **9,000** to about **5,000**, and CEO Marc Benioff said the company hired no new engineers in fiscal year 2026. - **Indeed Hiring Lab** reported [software development job postings](https://sqmagazine.co.uk/software-development-outsourcing-statistics/) down **36.4%** versus February 2020 and down **6.7%** year over year as of October 2025. - Workers with multiple AI skills earn a salary premium estimated near **43%** above non-AI counterparts, according to industry pay studies cited by Acceler8 Talent. - **BLS** projects software developer, QA analyst, and tester employment to grow **15%** from 2024 to 2034, with about **129,200** annual openings. ## Editor’s Choice - Layoffs.fyi tracked over **152,000** tech layoffs across **551** companies in 2024. - The 2025 total reached **122,549** layoffs across **257** companies, roughly **20%** below the 2024 figure. - **BLS** May 2024 OEWS data shows a software developer median annual wage of **$133,080**, with the top **10%** earning more than **$211,450**. - Software developers, QA analysts, and testers held about **1.7 million** jobs in 2024, per the BLS. - **Meta** cut about **3,600** jobs in February 2025, framed as a performance-based reduction targeting roughly **5%** of staff. - **Computer programmer** employment is projected to decline **6%** from 2024 to 2034, even as software developer roles grow **15%**. ## Recent Developments - **April 2026**: Meta announced plans to cut roughly **10%** of staff while pouring billions into AI investment, per CNN reporting. - **April 2026**: CNBC reported that combined Meta and Microsoft job cuts approaching **20,000** raised concerns of an AI-driven labor crisis. - **November 2025**: Amazon CEO Andy Jassy defended the **14,000** corporate cuts as culture-driven, not AI-driven, in an earnings call statement. - **October 2025**: Indeed Hiring Lab reported software development postings down **6.7%** year over year, marking persistent weakness. - **September 2025**: Salesforce CEO Marc Benioff confirmed **4,000** customer support roles cut as Agentforce AI took over routine conversations. - **July 2025**: Microsoft announced approximately **9,000** layoffs, equivalent to about **4%** of its global workforce. ## Aggregate Tech Layoff Totals version="1.0" encoding="UTF-8"? Tech layoffs fell 71% from the 2023 peak TECH WORKFORCE · SQ MAGAZINE ANALYSIS Tech layoffs fell 71% from the 2023 peak Total tech-sector layoffs by year, 2023–2025. Layoffs.fyi aggregate 122.5K -71% SINCE 2023 500K 400K 300K 200K 100K 0 2023 2024 2025 SOURCE Layoffs.fyi running aggregate, accessed May 2026 - Layoffs.fyi recorded over **152,000** tech employees laid off across **551** companies in 2024. - The 2025 figure tracked roughly **122,549** affected employees across **257** companies, a year-over-year reduction of about **20%**. - The 2023 peak reached **429,608** total tech layoffs, more than triple the 2025 number. - Across the three-year window, the aggregate total exceeds **700,000** tech sector job losses. - Layoff tracker site TrueUp logged similar 2025 totals close to **123,000** affected employees. - Q1 2025 alone accounted for **22,692** tech employees laid off across **81** companies. - The fact that 2025 cuts span fewer companies, **257** versus **551**, signals concentration among larger employers. - Industry analysts at Crunchbase News observed that 2024 and 2025 combined remained well below the 2022 to 2023 wave that produced over **600,000** cuts. YearTech Layoffs (Layoffs.fyi)Companies AffectedNotes2023429,6081,193Peak year, post-ZIRP correction2024152,000+55165% drop from 20232025122,54925720% drop from 2024Q1 202522,69281Leading quarter*Source: Layoffs.fyi, TrueUp Layoffs Tracker, Crunchbase News* ## Software Engineer Cuts at Major Tech Companies - [Microsoft](https://sqmagazine.co.uk/microsoft-statistics/) cut roughly **6,000** jobs in May 2025 with a focus on software engineering positions, per GeekWire and Reuters reporting on internal memos. - The company followed with another **9,000** cuts in July 2025, equivalent to about **4%** of its global workforce. - Amazon eliminated **14,000** corporate roles in late October 2025, the largest single Amazon cut since the **27,000** trim in late 2022. - Amazon disclosed estimated severance costs of **$1.8 billion** related to the October round. - Meta cut about **3,600** roles in February 2025, framed by CEO Mark Zuckerberg as a **5%** performance-based reduction. - Meta returned in April 2026 with a planned **10%** staff reduction tied to AI investment, per CNN. Historical staffing context lives in our [Meta employee count](https://sqmagazine.co.uk/how-many-people-work-at-meta/) coverage. - Salesforce reduced its support division from **9,000** to about **5,000** headcount, a **44%** reduction in that function. - Google trimmed hundreds of roles across Android, Pixel, and Chrome teams during 2025, smaller in scale than Microsoft or Amazon cuts. For aggregate context, see our [Google workforce data](https://sqmagazine.co.uk/how-many-people-work-at-google/). CompanyRoundAffected RolesDateStated ReasonMicrosoftQ2 2025~6,000May 2025Efficiency, management layersMicrosoftQ3 2025~9,000July 2025AI investment, ~4% global workforceAmazonCorporate14,000Oct 2025Culture, agility (Jassy)MetaPerformance~3,600Feb 2025Lowest performers, 5% cutMetaAI shift~10% staffApr 2026AI restructuring (CNN)SalesforceSupport~4,000Sep 2025Agentforce AI displacementGoogleAndroid/Pixel/ChromeHundreds2025Restructuring*Source: Microsoft GeekWire reporting, Amazon CEO statement, Meta internal memo, Salesforce earnings call, CNN April 2026 report* ## Software Engineer Layoffs by Seniority Level Stanford Digital Economy Lab research found that early-career workers aged 22 to 25 in AI-exposed occupations experienced a **13%** relative decline in employment since late 2022. Among 22-to-25-year-old software developers specifically, employment fell nearly **20%** from its late 2022 peak by July 2025. - Stanford ADP-payroll analysis showed early-career workers in the most AI-exposed occupations saw a **16%** relative employment decline. - Software developer employment for ages 22 to 25 fell roughly **20%** from its late 2022 peak by July 2025. - For workers aged 30 and over in the highest AI-exposure categories, employment grew between **6%** and **12%** from late 2022 to May 2025. - Indeed Hiring Lab reported senior tech job titles down **19%** versus five years earlier, while standard or junior titles fell **34%** as of February 2025. - Big tech entry-level hiring dropped more than **50%** over the last three years, according to Stanford’s accompanying employment-trend dataset. - UK junior developer openings fell nearly one-third versus 2022 levels, per LinkedIn workforce reports. - Across major EU markets, junior tech positions declined about **35%** in 2024 according to LinkedIn, Indeed, and Eures aggregated data. CohortEmployment Change Since Late 2022SourceNoteUS software developers, age 22 to 25-20% (peak to July 2025)Stanford / ADPMost AI-exposed cohortEarly-career, AI-exposed roles (all)-13% relativeStanfordAcross occupationsMost AI-exposed, age 22 to 25-16% relativeStanfordTightest clusterWorkers age 30+, high-exposure roles+6% to +12%Stanford / ADPCounter-trendUS tech postings, senior titles-19% (5-year)Indeed Hiring LabFeb 2025US tech postings, junior titles-34% (5-year)Indeed Hiring LabFeb 2025*Source: Stanford Digital Economy Lab “Canaries in the Coal Mine” working paper, Indeed Hiring Lab February 2025 report* ## AI Automation as a Driver of Software Engineer Cuts Microsoft CEO Satya Nadella stated in early 2025 that “maybe 20-30% of the code” in some Microsoft coding projects is now generated by AI, a public acknowledgment that came months before the company’s May 2025 software-engineering-focused layoff round. Salesforce CEO Marc Benioff, in a September 2, 2025, CNBC interview confirming the support division cuts, said directly that *“I need less heads.”* - Microsoft’s May 2025 round centered on software engineering positions, per GeekWire reporting on internal memos. - Nadella’s **20% to 30%** AI-generated code claim covers select coding projects, not the company’s entire codebase. - Salesforce hired **zero** new engineers in fiscal year 2026, with Benioff citing [AI-powered coding tools](https://sqmagazine.co.uk/ai-coding-security-vulnerability-statistics/) as the reason. - Salesforce’s Agentforce product handles roughly **50%** of all customer conversations, with the other half routed to humans. - [Salesforce](https://sqmagazine.co.uk/salesforce-statistics/) reported a support-cost reduction of about **17%** since deploying agentic AI in customer service. - The four roles most affected during AI restructuring rounds, per industry analyst rollups: software engineers and developers, QA engineers, product managers, and project managers. - Amazon’s October 2025 announcement linked the cuts explicitly to “efficiency gains” from artificial intelligence in a separate Galetti memo, even as Jassy publicly framed them as cultural. DriverEvidenceCompanyMagnitudeAI code generation“20-30% of code” written by softwareMicrosoft20% to 30%Agentic AI for supportHeadcount cut from 9,000 to 5,000Salesforce-44% in divisionAI hiring freezeZero new engineers hired in FY2026Salesforce0 hiresAI efficiency in corporate roles14,000 corporate eliminationsAmazon5% white-collarCode review and QA automationQA engineers in top-4 cut rolesIndustry-wideTop-4 cut category*Source: CNBC Salesforce interview, GeekWire Microsoft reporting, Amazon corporate statements* > **By the numbers:** Salesforce CEO Marc Benioff confirmed in a 2025 CNBC interview that the company’s support headcount fell from **9,000** to about **5,000** as AI-powered tools handled routine conversations, and Salesforce hired **zero** new engineers in fiscal year 2026. The shift represents the clearest CEO-level admission of AI substitution for engineering roles to date. ## Software Developer Job Postings and Hiring Decline Indeed Hiring Lab’s data feed for software development postings showed openings down **36.4%** versus the February 1, 2020, pre-pandemic baseline as of October 10, 2025. The same series posted a **6.7%** year-over-year decline, marking software development as one of the hardest-hit occupational categories on the platform. - Software development postings remained **33%** below February 2020 levels through Q3 2025, per Indeed Hiring Lab data. - Year-over-year decline of **6.7%** as of October 10, 2025, outpaced most other occupational segments tracked by the platform. - The software-engineering job-openings index hit a five-year low during 2025, according to The Pragmatic Engineer’s analysis of FRED-published Indeed data. - Earlier in 2025, software development postings were down **9.5%** in the year to January 17, 2025, before easing slightly through the summer. - Junior or standard tech titles in February 2025 sat **34%** below five-year-prior levels. - Senior tech titles in the same period were down a comparatively shallower **19%**. - Experience requirements have tightened across remaining postings, per Indeed Hiring Lab’s July 2025 analysis. ![Software Developer Job Market Decline](https://sqmagazine.co.uk/wp-content/uploads/2026/05/software-developer-job-market-decline.jpg "Software Developer Job Market Decline") ## BLS Software Developer Employment Outlook The US Bureau of Labor Statistics Occupational Outlook Handbook reports that software developers, quality assurance analysts, and testers held about **1.7 million** jobs in 2024, with overall employment in the combined category projected to grow **15%** from 2024 to 2034. For comparison, computer programmer roles, tracked separately, are projected to decline **6%** over the same window. - BLS counted approximately **1.7 million** software developer, QA analyst, and tester jobs in 2024. - The same category is projected to add jobs at a **15%** rate, much faster than the average for all occupations. - About **129,200** annual openings are projected for the combined category over the 2024 to 2034 decade. - Computer programmer roles, a smaller and older classification, held about **121,200** jobs in 2024. - Computer programmer employment is projected to fall **6%** by 2034, even with about **5,500** annual openings. - Software quality assurance analysts and testers alone accounted for about **201,700** jobs in 2024. - The divergence between BLS-classified software developers and computer programmers reflects a shift in role mix toward higher-skill development work. ![U.S. Software Workforce by Category](https://sqmagazine.co.uk/wp-content/uploads/2026/05/u-s-software-workforce-by-category.jpg "U.S. Software Workforce by Category") ## Software Developer Wages and AI Specialist Premium BLS Occupational Employment and Wage Statistics data for May 2024 placed the median annual wage at **$133,080**, with the bottom **10%** earning under **$79,850** and the top **10%** earning above **$211,450**. AI-specialist roles command additional premiums on top of this baseline, with multi-skill AI engineers reaching the strongest pay differentials. - Software developer median annual wage stood at **$133,080** as of May 2024, per BLS OEWS. - The bottom **10%** of software developers earned less than **$79,850** annually in May 2024. - The top **10%** earned more than **$211,450**, a roughly 2.6x spread between deciles. - Software QA analysts and testers had a median annual wage of **$102,610** in May 2024, per the same OEWS dataset. - AI engineer base salaries averaged about **$206,000** in 2025, climbing roughly **7%** in Q1 2026, per Acceler8 Talent’s market-rates survey. - Workers with AI skills earned about **28%** more than their counterparts without, with multi-AI-skill workers commanding closer to **43%** premiums. - Meta’s 2025 H-1B visa filings showed software engineer base pay between **$124,000** and **$450,000**, with the highest AI roles reaching **$650,000** in base pay. ![How Much Do Software Developers and AI Engineers Earn](https://sqmagazine.co.uk/wp-content/uploads/2026/05/how-much-do-software-developers-and-ai-engineers-earn.jpg "How Much Do Software Developers and AI Engineers Earn") > **Key finding:** US Bureau of Labor Statistics May 2024 OEWS data placed software developer median annual wage at **$133,080**, with the top **10%** clearing **$211,450**. AI-specialist roles, per Acceler8 Talent’s 2025 survey, average about **$206,000** base, and multi-AI-skill workers see roughly **43%** salary premiums over non-AI peers. ## Stack Overflow Developer Survey: Employment Snapshot The 2025 Stack Overflow Developer Survey collected responses from over **49,000** developers across **177** countries. In the United States, **74.8%** of respondents reported full-time employment, with the remainder split between freelancers, students, retirees, the unemployed, and respondents who declined to answer. - Stack Overflow’s 2025 survey reached more than **49,000** professional and student developers globally. - The United States subset showed **74.8%** of developers in full-time employment as of mid-2025. - About **5.6%** of US respondents identified as full-time students, with **10%** reporting freelance work. - The remaining **9.6%** of US respondents fell into the unemployed, retired, or no-information categories combined. - Germany posted the highest formal-employment rate among the top-five countries at **76%**. - The United Kingdom followed closely at **75%** formal-employment among surveyed developers. - Across all surveyed countries, the average employment rate hovered near **70%**, consistent with prior-year survey waves. The same survey also documents AI tool adoption among developers, which we cover in our [shadow AI usage statistics](https://sqmagazine.co.uk/shadow-ai-usage-statistics/) breakdown. ![Software Engineer Full-Time Employment Rates by Country](https://sqmagazine.co.uk/wp-content/uploads/2026/05/software-engineer-full-time-employment-rates-by-country.jpg "Software Engineer Full-Time Employment Rates by Country") ## Reasons Cited for Software Engineer Layoffs - Microsoft’s stated rationale for 2025 cuts emphasized trimming management layers and shifting capital toward AI infrastructure investment. - Amazon CEO Andy Jassy framed the **14,000** corporate cuts as primarily about culture and agility, telling investors they were “not really financially driven, and not even AI-driven, not right now at least.” - Meta’s February 2025 round was officially performance-based, targeting roughly **5%** of staff, though laid-off employees disputed the “low performer” label publicly. - Salesforce CEO Marc Benioff explicitly cited AI labor substitution, stating *“I need less heads”* with reference to Agentforce capabilities. - Industry analysts at Crunchbase News estimated about **25%** of March 2026 cuts traced to AI and automation, with roughly **75%** still attributable to cost discipline and unit-level restructuring. - The lagging effect of 2020 to 2022 over-hiring continues to drive non-AI cuts, particularly at firms that doubled engineering headcount during the pandemic-era cheap-capital window. - Strategic capital reallocation, where layoff savings fund AI compute and data-center buildout, appears in nearly every Big Tech earnings call from 2025; the same shift pulls headcount into chip and infrastructure firms, as our [Nvidia workforce data](https://sqmagazine.co.uk/how-many-people-work-at-nvidia/) shows. ![Top Reasons For Software Engineer Layoffs](https://sqmagazine.co.uk/wp-content/uploads/2026/05/top-reasons-for-software-engineer-layoffs.jpg "Top Reasons for Software Engineer Layoffs") ## Software Engineer Layoffs vs Other Tech Role Cuts - Across the **122,549** total 2025 tech layoffs, the largest share of role-typed cuts hit non-technical functions, including HR, communications, and recruiting. - Within engineering-specific cuts, the four most-affected roles per analyst rollups are software engineers and developers, QA engineers, product managers, and project managers. - Salesforce’s headline 2025 round affected customer support, not engineering, leaving its core dev workforce intact even as the company stopped hiring new engineers. - Microsoft’s May 2025 round skewed toward software engineers, an exception to the broader 2025 pattern of non-engineering cuts dominating. - Recruiting and talent functions absorbed disproportionate cuts at multiple firms, reflecting the shift from growth-mode hiring to maintenance-mode workforce planning. - UX designers and product managers tracked closer to engineer cut rates than to recruiter or HR cut rates in 2025 layoff announcements. - Sales roles were comparatively protected at Big Tech firms in 2025, except for the Salesforce support reorg. Role Category2025 Layoff Share PatternNotesSoftware engineers / developersHigh exposure in select roundsMicrosoft May 2025 emphasisQA engineers / testersTop-4 AI restructuring categoryMultiple firmsProduct managersTop-4 AI restructuring categoryCross-firm patternProject managersTop-4 AI restructuring categoryCross-firm patternCustomer supportLargest single-function cut at SalesforceAgentforce-drivenHR / recruitingDisproportionate non-tech cutsAcross most firmsSalesComparatively protectedOutside Salesforce reorgUX / designMid-exposureTied to product-line wind-downs*Source: Crunchbase News role analysis, Fortune coverage of company-level rounds, individual company memos* ## Frequently Asked Questions (FAQs) **How many software engineers were laid off in 2025?**Layoffs.fyi tracked about 122,549 total tech layoffs in 2025 across 257 companies. Software engineers represented a meaningful share, especially in Microsoft’s May 2025 round, but most 2025 cuts hit non-technical roles such as HR, communications, recruiting, and customer support, per Crunchbase News role-level analysis. **Are software engineer layoffs caused by AI?**AI is a partial driver, not the sole cause. Analyst rollups cited by CNBC attribute about 25% of March 2026 cuts to AI and automation, with roughly 75% tracing to cost discipline and unit restructuring. Microsoft, Salesforce, and Amazon have publicly tied portions of their 2025 cuts to AI productivity gains. **Which big tech companies laid off the most software engineers in 2025?**Microsoft cut over 15,000 roles across two 2025 rounds, with the May round focused on software engineering. Amazon eliminated 14,000 corporate positions, roughly 5% of its white-collar workforce. Meta announced a 5% workforce reduction affecting about 3,600 employees, with U.S. workers notified in February 2025. Salesforce reduced its support division from 9,000 to about 5,000 rather than cutting engineers directly. **Are junior or senior software engineers more affected by layoffs?**Junior software engineers face significantly more pressure. Stanford research showed software developer employment for ages 22 to 25 fell nearly 20% from the late 2022 peak by July 2025, while workers aged 30 and over in the same AI-exposed category saw employment rise 6% to 12%. Indeed Hiring Lab found junior tech titles down 34% versus senior titles down 19%. **Is software engineering still a good career after the 2024 to 2025 layoffs?**US Bureau of Labor Statistics projects 15% employment growth for software developers, QA analysts, and testers from 2024 to 2034, with about 129,200 annual openings. Median pay sits at $133,080, with AI-skilled engineers commanding around 28% premiums and multi-AI-skill professionals near 43% above baseline. ## Conclusion Software developers aged 22 to 25 absorbed a roughly **20%** employment decline from their late 2022 peak by mid-2025, while workers aged 30 and over in the same AI-exposed category saw employment grow 6% to 12%, per Stanford Digital Economy Lab analysis. That single asymmetry pulls the layoff narrative away from “general engineering collapse” toward a tighter story: cuts concentrated at the junior level and across management layers, with mid-career and senior engineers holding ground or even gaining share where AI specialization is involved. The companies driving the headline numbers, Microsoft, Amazon, Meta, and Salesforce, each had their own stated reasons, ranging from “culture” to performance management to explicit AI substitution. The data points beneath those statements are consistent: software development job postings remain **36.4%** below February 2020 levels per Indeed Hiring Lab, and hiring has frozen at firms like Salesforce. Meanwhile, the AI-skill premium has widened to **43%** for engineers with multiple AI specialisations, per Acceler8 Talent data. Mid-career engineers with AI fluency benefit most from the divergence, while early-career entrants face the steepest entry barrier in over a decade. The Bureau of Labor Statistics still projects **15%** software developer employment growth through 2034. If the historical pattern holds, the recovery will favor specialists, redeployers, and engineers who pair traditional software craft with AI tooling fluency.