Software engineers adapt to AI through skill development and collective action amid layoffs

Software engineers are facing a challenging landscape as AI transforms the industry. In 2024, layoffs have left many professionals, like George Dover from Portland, Oregon, seeking new paths while adapting to the evolving demands of their roles. With AI increasingly writing code, engineers are doubling down on core skills and exploring collective action for better job security.

Impact of AI on Software Engineering Careers

In 2022, software engineering was one of the highest-paying professions in the US, with salaries exceeding $200,000. However, since the rise of AI tools like OpenAI's ChatGPT, over 600,000 tech workers have lost their jobs, and the unemployment rate for computer science graduates rose to 7% in 2024. This shift has sparked anxiety among software engineers as they navigate a marketplace where their coding skills may be losing value.

According to the New York Fed, the underemployment rate for computer science graduates now exceeds 19%. Additionally, tech job postings on Indeed have dropped 36% from 2020 to 2025. Experts suggest that the ability to evaluate AI-generated code is becoming increasingly important, fundamentally altering what it means to be a software engineer.

Strategies for Staying Relevant in an AI-Driven Industry

Many software engineers, like Matt, who preferred to remain anonymous, are actively working on personal projects to maintain their coding skills. Matt, who has shifted from coding to reviewing AI-generated code, emphasizes the importance of keeping skills sharp: “I am trying not to leverage AI where I can.” This sentiment is echoed by others in the industry who are seeking to balance the use of AI with traditional coding practices.

Engineers are focusing on fundamental skills, such as problem-solving and system design, rather than merely writing code. As Bouke Klein Teeselink, an assistant professor at King’s College London, noted, “AI is hugely augmenting what it means to be a software engineer.”

Collective Action and New Opportunities in the Tech Sector

In response to the changing landscape, some engineers are considering collective action to advocate for better job protections. Others, like George Dover, have pivoted to different roles, including teaching, while searching for new opportunities. After applying to 400 jobs, Dover landed a new position focused on AI development, demonstrating the potential for adaptation.

As the profession evolves, engineers are not only adapting their skills but also exploring innovative ways to utilize AI effectively. This includes using AI to generate code while rigorously testing its quality to ensure reliability. The transition is challenging, but many are committed to finding their place in this new tech environment.