In 2019, there were about 1.5 million software developers in the U.S., with a projected 22% growth by 2029.
However, by 2025, AI advancements led to a decrease in job opportunities, with over 110,000 global layoffs. AI tools like GitHub Copilot and models from companies like Google and Microsoft began automating coding tasks, reducing the need for human developers.
Major companies such as Meta and Salesforce laid off thousands, citing AI integration. Although AI is replacing some developer roles, human expertise remains crucial for strategic tasks, signaling a shift in the profession rather than its complete end.
CHAPTERS: 0:00 Software Engineers Career 1:02 Tech Jobs 2:04 AI Coders 3:17 AI Engineers 4:05 Tech Job Market 5:48 Tech Layoffs 6:14 Software Developer Leverage 7:34 Future of Software Developers
Produced by: Samantha Harvey Edited by: Jacob Smith Animation: Charlotte Brown Additional Footage: Getty Images
Once considered the premier career in the U.S. due to high salaries and flexibility, software development is facing a crisis. The rapid rise of AI is automating coding tasks, leading to massive layoffs at tech giants like Meta, Google, and Microsoft, and forcing a fundamental shift in the role of the human developer.
For years, being a software developer was considered the best job in the U.S.
U.S. News & World Report is out with its annual ranking of best jobs,
and for the first time in three years, a healthcare job does not top the list.
Software developer came in at number one.
A lot of them in the healthcare profession, but software developer nabbed number one.
Exorbitant salaries, travel stipends, and flexible working hours made it seem like a dream job.
But that era seems to have come to an end.
And then over time, we'll get to the point where a lot of the code in our apps,
and including the AI that we generate,
is actually going to be built by AI engineers instead of people engineers.
About 1.5 million.
That was the number of software developers in the United States in 2019.
According to the U.S. Bureau of Labor Statistics,
this number was expected to grow by 22% until 2029.
But the rapid advancement of AI in recent years was not anticipated.
As of 2025, not only have the job positions for software developers not increased,
but they have actually decreased.
Another round of layoffs in the tech sector.
Microsoft announcing it is laying off about 5% of its workforce.
Meta, owner of Facebook, is trimming 5% of its workforce.
Alphabet is the latest tech giant to trim thousands of jobs.
Over 110,000 software developers have been laid off globally.
This data reflects the continuation of a concerning trend in the tech sector,
where layoffs have been significant in recent times.
Software developers now find themselves in a highly competitive environment,
where innovation and adaptability are no longer just advantages,
but basic requirements to survive in the job market.
Leading companies, which once represented the dream of any software professional,
have begun massive restructuring.
Meta, for example, announced the elimination of 16,000 jobs
as part of its focus on artificial intelligence,
a technology that is redefining market demands.
So is this the end of software developers?
And what is their future in the workforce?
For years, software developers were considered
one of the key components of the tech sector.
From the late 1990s until the early 2020s,
the demand for these professionals grew exponentially.
In 2000, the world was just beginning to experiment with the internet,
and the need to create new applications and web services
skyrocketed the hiring of programmers.
By 2015, software development had become a high-demand field,
and universities and technical schools were filled with students
interested in pursuing this career.
However, as artificial intelligence advanced by leaps and bounds,
especially in recent years, the landscape began to change.
In 2020, companies like Google, Microsoft, and OpenAI
began developing AI models which could generate code almost autonomously.
ChatGPT. Maybe you've heard of it.
If you haven't, then get ready.
Because this promises to be the viral sensation
that could completely reset how we do things.
It is the embryonic version of online artificial intelligence,
the early frontrunner that reportedly has just secured
a $10 billion shot in the arm from Microsoft.
This advancement was a sign that AI could take over many of the tasks
that were previously reserved for human developers.
The year 2023 marked a turning point in the industry.
Tools like GitHub Copilot, powered by OpenAI,
began assisting developers by generating complete code snippets
with just a few lines of input.
And I'm so excited to show you how Microsoft 365 Copilot
is coming to life in the products millions of people use and rely on every day.
Although initially these tools were seen as helpful add-ons,
it didn't take long for experts to realize their potential
to replace human jobs in programming.
Companies began reducing their software development staff
due to AI's ability to perform the work with less human intervention.
By 2025, many sectors of the tech industry
were already in the midst of a radical transformation.
A study in 2024 revealed that 32% of tech companies
had already implemented AI tools to automate programming tasks.
Large companies like Meta, Google, and Amazon
are massively adopting AI to write code, test software, and maintain systems,
leading to a drastic decrease in the demand for traditional developers.
In 2025, Meta laid off more than 10,000 employees,
of which approximately 15% were software engineers,
as part of a restructuring aimed at integrating more AI-based tools.
In February 2025, Workday laid off 1,750 employees,
approximately 8.5% of its global workforce.
Salesforce and Cruise and Workday announced they're going to make cuts.
An analysis indicated that the adoption of AI
in its software development process contributed to these layoffs.
In January 2025, Salesforce eliminated more than 1,000 jobs,
with a 15% reduction in its software engineering team,
citing the efficiency of AI tools.
Salesforce, they're cutting more than 1,000 jobs,
and instead they're going to hire salespeople
to sell their artificial intelligence products.
Moreover, layoffs of these professionals are not limited to tech companies,
but are occurring across all types of businesses.
45% of non-tech companies plan to replace part of their development teams
with AI technologies in the next three to five years.
Layoffs of software engineers, once newsworthy due to their rarity,
have now become a constant.
For example, Meta laid off thousands of employees in 2025,
citing the integration of AI tools to optimize their workflow.
Artificial intelligence is transforming programming,
allowing people with no prior knowledge
to create lines of code for complex applications and games
using natural language instructions.
But there's a problem.
All that work that was previously done by software developers
can now be performed by AI,
meaning this technology has already taken away hundreds of thousands of jobs
and will continue to do so in the coming decades
if the pace of technological advancement remains so fast.
Many tasks that previously required entire teams of developers
can now be handled by automated systems.
Additionally, companies are looking to reduce costs and increase efficiency,
which leads to the elimination of staff whose roles can be replaced or outsourced.
Think ChatGPT.
It can help you with your homework and it can help businesses save billions.
This technology can boost productivity over time by over $230 billion.
This, combined with the fact that companies have shifted their priorities to cost reduction,
has led to the rapid growth of tech companies during the last decade,
hiring large teams without fully considering long-term sustainability.
Now, with a more uncertain economic landscape,
organizations are adjusting their structures
and eliminating roles considered non-essential.
On one hand, the advancement of such technologies
allows for increased efficiency and productivity in businesses,
but it comes at the cost of eliminating jobs for software developers.
Despite automation, human experience remains crucial.
Developers now focus more on strategic tasks,
such as system architecture, solution integration, and overseeing AI tools.
Moreover, creativity and the ability to solve complex problems
remain indispensable human skills.
Collaboration between humans and machines has created an environment
where AI becomes a tool that enhances the developers' capabilities
rather than completely replacing them.
This phenomenon does not signify the total end of software developers,
but it does mark a significant change.
Developers must now adapt and learn how to work alongside AI,
taking on more strategic and supervisory roles,
while repetitive and basic tasks are increasingly automated.
The profession, though still relevant, faces an uncertain future,
where the ability to interact with AI systems
may become more important than in-depth knowledge of traditional programming languages.
What do you think?
Let us know in the comments below.