Tech layoffs hit their highest single month total in years in May, and AI was the most-cited reason, according to outplacement firm Challenger, Gray & Christmas.

Software engineering, in theory, is the professional field most vulnerable to automation, given the rapid adoption of AI-powered coding tools. However, researchers at venture firm SignalFire say the hiring data tells a different story.

“The rationale given for lots of layoffs is consistently AI, and specifically they’ll say AI with respect to code; they’ll say one engineer could do the job of however many engineers in the past,” said Asher Bantock, SignalFire’s head of research. “What we’re seeing on the ground is a little inconsistent with that.”

SignalFire’s analysis, which tracked the careers of millions of employees across more than 80 million companies, suggests that engineering was the most resilient job function in 2025. Instead of focusing on layoffs, which are difficult to track because people often delay updating their employment status after job cuts, SignalFire examined hiring data as a more accurate indicator of real-time workforce trends.

While total hiring across large tech companies dropped 25% compared to 2019 levels, engineering roles saw a much smaller decline of just 11%, according to SignalFire’s latest “State of Talent Report.”

In fact, engineers comprised 55% of all new hires in 2025 across the 12 companies SignalFire classifies as “Tech Majors” — Alphabet, Meta, Apple, Amazon, Microsoft, Netflix, Nvidia, Tesla, Uber, Airbnb, Block, and Stripe. This is a significant jump from 2019, when engineers represented only 46% of new recruits, according to the report.