The 2022-2023 tech layoffs were the largest since the 2001 dot-com bust. By 2025, the market has restabilized — but in a fundamentally different shape. The skills that were in demand in 2021 don't all map to what's in demand now.
The Layoff Data (2022-2024)
| Year | Estimated tech layoffs | Major companies |
|---|---|---|
| 2022 | 160,000 | Twitter (75%), Meta (13%), Amazon (18K) |
| 2023 | 277,000 | Google (12K), Microsoft (10K), SAP (3K) |
| 2024 | 135,000 | UPS, Boeing, Snap, Tesla |
| 2025 YTD | 65,000 | Intel, Workday, Salesforce reductions |
The 2025 picture: Layoffs continue but are more targeted — specific functions, not blanket headcount reductions.
What Got Cut vs. What's Being Hired
Most affected roles (2022-2024 layoffs):
- Recruiting and HR (tech companies over-hired 2020-2022)
- Program management and project coordination
- Middle management layers
- Marketing and comms teams
- Consumer product roles at B2C-heavy companies
Least affected / growing:
- AI/ML engineering (+200% job postings 2023-2025)
- Security engineering (+35%)
- Data engineering (+45%)
- Platform/infrastructure engineering (+20%)
- AI product management (new role category)
Salary Trends by Role (2024-2025)
| Role | 2021 peak | 2023 | 2025 | Trend |
|---|---|---|---|---|
| Software Engineer (mid) | $175K TC | $145K TC | $155K TC | Recovering |
| ML Engineer | $230K TC | $220K TC | $240K TC | Growing |
| AI Engineer (new) | — | $180K TC | $210K TC | New category |
| Data Scientist | $170K TC | $140K TC | $148K TC | Stable |
| PM (tech) | $190K TC | $160K TC | $165K TC | Stable |
| Security Engineer | $180K TC | $175K TC | $195K TC | Growing |
| Recruiter (tech) | $140K TC | $95K TC | $105K TC | Recovering |
The AI Bifurcation
The 2025 tech job market is cleaving into two tracks:
Track 1: AI-native roles (growing fast)
- Prompt engineers, AI trainers, AI product managers
- ML engineers with LLM expertise
- AI safety and alignment roles
- Companies building AI products
Track 2: Traditional software (stabilizing)
- Enterprise software engineering
- Legacy system maintenance
- Non-AI infrastructure
Track 3: AI-replaceable roles (declining)
- Junior roles with high routine-task content
- Basic data entry, QA, simple content creation
- Mid-level roles that don't differentiate from AI output
Layoff Survival Strategies (Data-Backed)
Network before you need it: LinkedIn data shows: candidates referred by employees are 4x more likely to receive offers. Job posting applications have 2-5% callback rates; referrals have 15-25% callback rates.
Positioning toward AI: Software engineers who can work with AI models (even basic API integration) command 20-40% salary premium over equivalent engineers without that experience. Adding AI skills to your stack is the highest ROI career investment in 2025.
Build outside of employment: Engineers with public GitHub, technical blog, or open-source contributions receive 2x more recruiter outreach. Visibility compounds.
Consider less competitive markets: Outside top 5 US tech cities, competition for senior engineers is significantly lower, often at 80-85% of SF/NYC salaries with 40-50% lower cost of living.
The Job Search Reality (2025)
Median time-to-offer for software engineers (from first application):
| Level | 2021 | 2023 | 2025 |
|---|---|---|---|
| Junior (0-2 years) | 6 weeks | 4 months | 3 months |
| Mid (2-5 years) | 4 weeks | 3 months | 2 months |
| Senior (5+ years) | 3 weeks | 2 months | 6 weeks |
| Staff/Principal | 3 weeks | 6 weeks | 5 weeks |
The market has improved from the 2023 trough. Senior engineers and those with AI experience are seeing near-2021 conditions. Junior engineers still face a more competitive market than pre-2022.
Application volume reality: Most engineers need 50-150 applications to generate 3-5 final round interviews in 2025. This is 3-5x more applications than 2021. The "spray and pray" approach is less effective — targeted applications to companies actively hiring outperform generic applications.
Use the Salary Comparison Calculator to compare current offers and market benchmarks for your role and location.