Hey devs 👋
I've been coding for 5 years now, and I've never seen anything like what's happening in tech right now. On July 2nd, Microsoft announced they're laying off 9,000 more employees - that's 4% of their global workforce. This comes just 2 months after they cut 6,000 jobs in May.
But here's the kicker - this isn't just Microsoft. The entire tech industry is going through a brutal correction that's affecting developers at every level.
The Numbers Are Insane 📊
According to the latest tracking data:
- 93,799 people have lost their jobs at tech companies in 2025
- That's 504 people per day losing their jobs
- 392 companies have conducted layoffs this year
- We're only halfway through 2025 😬
To put this in perspective, that's like the entire developer population of a major city just... gone.
Sources:
Who's Getting Hit This Month 🎯
Microsoft (9,000 employees - July 2nd)
- Gaming division heavily affected
- "Removing layers of management" across teams
- Focus on "strategic growth areas" (aka AI)
Intel (15-20% of foundry division)
- Starting layoffs in July
- Shut down entire automotive chip business
- Cost-cutting to save $500M in 2025
IBM (8,000 employees)
- Majority from HR department
- AI agents replaced 200 HR roles
- This is the scary part - actual AI replacement
Disney (Product & Tech teams)
- Streaming services development teams
- "Under 2%" but still significant numbers
Bumble (240 employees - 30% of workforce)
- $40M annual savings target
- Dating app market struggling
The AI Replacement Reality 🤖
Here's what's really happening that nobody wants to talk about:
IBM didn't just lay off 8,000 people - they replaced HR workers with AI agents. These aren't chatbots, they're sophisticated AI systems handling:
- Employee queries
- Processing paperwork
- Organizing HR data
- Administrative tasks
IBM CEO Arvind Krishna said they're using AI "very aggressively" to streamline operations.
This isn't just cost-cutting anymore - it's wholesale job replacement.
What This Means for Developers 👨💻
The Skills That Are Safe (For Now)
- AI/ML engineering - Obviously
- DevOps/Platform engineering - Still need humans to manage infrastructure
- Security - Can't automate away cybersecurity entirely
- Mobile development - Complex UI/UX still needs human touch
- Full-stack with AI integration - Companies want devs who can work WITH AI
The Skills That Are Vulnerable
- Junior frontend roles - AI tools are getting scary good at HTML/CSS/React
- Basic backend CRUD - Why hire a dev when AI can generate APIs?
- QA/Testing - Automated testing tools are replacing manual testers
- Data entry/migration - First to go to AI automation
What You Should Do RIGHT NOW
1. Learn AI Development
# If you're not learning LangChain, OpenAI APIs,
# or building AI-integrated apps, you're behind
import openai
from langchain import LLMChain
# This is your new best friend
2. Become Platform/Infrastructure Focused
- Kubernetes, Docker, AWS/Azure/GCP
- DevOps tools and practices
- Database optimization and scaling
3. Develop Business Domain Expertise
- FinTech, HealthTech, EdTech knowledge
- Understanding the business logic, not just the code
- Become the dev who understands WHY we're building something
4. Build a Strong Network
- Contribute to open source
- Write technical blogs (like this one!)
- Attend meetups and conferences
- Most jobs come from referrals, not applications
The Brutal Truth About Job Hunting Now 😰
I've been talking to laid-off devs, and here's what they're experiencing:
The Competition is Insane
- 500+ applications for senior dev roles
- Multiple rounds of technical interviews
- Companies being extremely picky
- Salary expectations have dropped 20-30%
Location Matters More Than Ever
- Remote roles are disappearing first
- Companies prefer local/hybrid workers
- Cost of living adjustments are real
Experience Level Paradox
- Junior roles: "Need 3+ years experience"
- Senior roles: "Overqualified, too expensive"
- Sweet spot seems to be 3-7 years experience
My Personal Strategy (What I'm Doing) 🎯
I'm not waiting around to see if my job is safe. Here's my plan:
Short-term (Next 3 months)
- Learning LangChain and building AI-integrated apps
- Contributing to 2-3 open source projects
- Writing more technical content
- Networking with other developers
Medium-term (6-12 months)
- Building a solid emergency fund (6+ months expenses)
- Developing expertise in a specific domain (I chose FinTech)
- Creating multiple income streams (freelancing, content creation)
- Keeping my LinkedIn updated and active
Long-term (1+ years)
- Considering starting my own dev consultancy
- Building products that use AI, don't compete with it
- Focusing on problems that require human creativity + AI tools
The Mindset Shift We All Need 🧠
This isn't the same tech industry we entered 5-10 years ago. The rules have changed:
Old mindset: "Learn to code and you'll always have a job"
New mindset: "Learn to solve problems with code + AI, and adapt constantly"
Old mindset: "Specialization in one framework/language"
New mindset: "Broad skills with deep expertise in business domains"
Old mindset: "Job security at big tech companies"
New mindset: "Career resilience through multiple skills and income streams"
What Companies Actually Want Now 💼
Based on recent job postings and conversations with hiring managers:
They Want:
- Developers who can work WITH AI tools, not against them
- Full-stack developers with cloud/DevOps skills
- Domain experts who can code (healthcare dev, fintech dev, etc.)
- Problem solvers, not just code writers
- People who can wear multiple hats
They Don't Want:
- Specialists in single frameworks
- Developers who refuse to use AI tools
- "Code monkeys" who just implement specs
- Expensive senior devs who can't justify their cost
- People who need extensive onboarding/training
The Silver Lining ✨
I know this all sounds doom and gloom, but there are opportunities:
1. Less Competition for AI-Focused Roles
While traditional dev roles are competitive, AI/ML roles are still in high demand. Companies are desperately looking for developers who can build AI-integrated applications.
2. Freelancing/Consulting Opportunities
Many companies are cutting full-time employees but still need development work done. This creates opportunities for skilled freelancers.
3. Startup Opportunities
While big tech is cutting, innovative startups are still hiring. They need developers who can move fast and wear multiple hats.
4. Geographic Arbitrage
If you can work remotely, consider opportunities in markets with lower competition but good compensation.
Action Items for This Week 📝
Don't just read this and move on. Take action:
- [ ] Update your LinkedIn profile with AI/ML skills
- [ ] Start learning LangChain or OpenAI APIs
- [ ] Contribute to one open source project
- [ ] Reach out to 3 people in your network
- [ ] Build a simple AI-integrated side project
- [ ] Start writing technical content (blogs, tutorials)
- [ ] Research companies in your domain of interest
- [ ] Update your resume with business impact, not just tech skills
The Bottom Line 🏁
The tech industry is going through its biggest transformation since the dot-com bust. The developers who survive and thrive will be those who:
- Embrace AI as a tool, not a threat
- Develop business domain expertise
- Build strong professional networks
- Stay adaptable and keep learning
- Create multiple income streams
Sources:
- Microsoft Layoffs - CNBC
- TrueUp Layoffs Tracker
- TechCrunch 2025 Layoffs List
- IBM AI Replacement - Business Today
This isn't the end of software development - it's the evolution of it. The question is: will you evolve with it?
What's your strategy for navigating these layoffs? Are you learning AI development? Share your thoughts in the comments below! 👇
Follow me for more career insights and tech industry analysis. Let's support each other through these challenging times. 🤝
Top comments (2)
AI replacement is not what drives the massive layoffs.
IT is a knowledge profession, if you can't adapt your skills will become obsolete. Or you know a weird language like Cobol where big infrastructure is build on, then you don't need to learn that much.
I just checked out a simple quiz application from someone who vibe coded it. And there is a lot of room for improvement in the code. So I don't agree with that statement.
And are we really going to use React for everything much longer? It is dying technology, I would place it in the list with jQuery.
I put my trust in human testers over AI testers. AI test tools will help QA people.
One framework is indeed narrow. But you can get a lot done with one language and a healthy dose of curiosity.
You don't need to know business domains, just bring your learning skills. Even in the same domain each business has rules that are not standard. Learning how they operate is more important.
Don't take AI that serious as a threat. Keep an eye on it. But focus on improving your knowledge.
Really feeling this shift too - I started focusing on building AI-first tools a year ago and it's made all the difference for me.
How are you deciding which AI frameworks to invest the most time in right now?