Monday, August 4, 2025

Don’t Blame AI: The Real Reasons Software Engineers Get Laid Off

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5 Key Takeaways

  • AI is not the main reason for software engineer layoffs; cost-cutting and overhiring are bigger factors.
  • Companies often hire too quickly and then can't sustain the costs, leading to layoffs.
  • AI tools are changing the job landscape, but human-written code is still valued by some engineers.
  • Demand for software engineers hasn't noticeably decreased, though AI skills are becoming more important.
  • Higher-paid software engineers are often targeted in layoffs to reduce company expenses.

Why I Don’t Blame AI for Losing My Job as a Software Engineer

Hi everyone, I’m Marc, and I’ve been a software engineer for almost three decades. Over the last 18 years, I’ve lost my job four times. With all the talk about artificial intelligence (AI) taking over jobs, you might think that’s the reason I’ve been laid off so many times. But honestly, I don’t think AI is the real problem.

Let me take you back a bit. I fell in love with computers when I was just a kid in the late 1970s—back when hardly anyone had a computer at home. I knew early on that I wanted to work with computers, and I’ve been lucky enough to do that for most of my life.

My first big layoff was in 2008 at Sun Microsystems. The company had been laying people off for years, and eventually, my team was hit. After that, I lost my job three more times—once at a plagiarism-checking company in 2019, again at the start of COVID when the company’s revenue dropped, and most recently, just two months ago at Walmart Global Tech, where about 1,500 people were let go.

Now, AI is definitely changing the way we work. At Walmart, they started pushing us to use AI tools to help write code. I was a bit skeptical—I still think human-written code is better. But I did see some value in AI tools that help review code for mistakes. The truth is, a lot of jobs now want you to have AI experience, but most companies are willing to let you learn on the job.

So, if AI isn’t the main reason for all these layoffs, what is? In my experience, it’s more about companies hiring too many people too quickly. When money gets tight, they have to cut costs, and that often means layoffs. Software engineers tend to have higher salaries, so we’re often the first to go when companies need to save money. Sometimes, companies think they don’t need as many engineers once a product is built—but that’s risky, because bugs and updates always come up.

Even though I’ve been laid off several times, I’ve always found a new job within a few months. I haven’t noticed a big drop in demand for software engineers, though the job market isn’t growing as fast as it used to.

So, while AI is changing things, I don’t blame it for my job losses. The real issue is how companies manage their hiring and finances. If you’re worried about AI, my advice is to keep learning and stay flexible—there’s still plenty of work out there for people who love to code.


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