The Good Tech Companies - Is Software Engineering Oversaturated In 2025?

Episode Date: August 25, 2025

This story was originally published on HackerNoon at: https://hackernoon.com/is-software-engineering-oversaturated-in-2025. Tech jobs aren’t dying—they’re dividing. AI, ML, cybersecurity & cloud roles are surging as traditional dev jobs shrink. Here’s how to adapt. Check more stories related to tech-stories at: https://hackernoon.com/c/tech-stories. You can also check exclusive content about #aiml, #learn-machine-learning, #ai-engineer-jobs, #software-engineering, #tech-job-market, #software-engineering-in-2025, #codesmith-builds, #good-company, and more. This story was written by: @codesmithio. Learn more about this writer by checking @codesmithio's about page, and for more stories, please visit hackernoon.com. The software job market isn’t collapsing—it’s splitting. Traditional dev roles are shrinking under automation and layoffs, while demand in AI, ML, cybersecurity, and cloud is skyrocketing. Engineers who pivot to these growth areas will thrive.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Is software engineering oversaturated in 2025 by Codesmith? A tale of two markets. On the surface, the tech job market looks like a paradox. On one side, traditional full-stack developer roles disappearing, applications stacking up, and frustrated engineers struggling to land interviews. On the other, a hiring boom in AI and other high-demand specializations, with salaries climbing and rolls going unfilled. This isn't just a market shift, it's a market

split. The old pathways into software engineering are narrowing, while entirely new ones are widening faster than many engineers can pivot. The squeeze on traditional roles. The numbers tell a clear story. Since 2015, more than 177,000 software engineer shave entered the U.S. market through degrees, boot camps, and self-taught routes, BLS. But since 2020, demand for traditional software engineering roles has dropped by one-third, layer on the 300,000 plus tech layoffs since 2022, with 42% coming from Fang companies alone, and you get an intense competition dynamic. Senior engineers applying for mid-level jobs, juniors competing with automation, and entry-level opportunities disappearing. What's gone quiet is the fact that the market itself has in

shrunk. It's shifted. AI. The Fast Lane. For engineers fluent in AI and ML, the hiring landscape is almost unrecognizable compared to their generalist peers. AI engineer job postings are up 143% since May 2024. AI roles overall have grown 38% since 2019, expanding over three times faster than the average job. The velocity of change here is staggering. Skills requirements in AI are evolving 25% faster than in any other tech sector. Microsoft data indicates that 2025's top-in-demand roles will include AI trainer, AI data specialist, and AI security specialist. This isn't hype, it's math. The BLS projects a 17% growth in software roles by 2030, mostly in AI and ML. And the growth isn't just in Silicon Valley, industries like retail and healthcare are building AI teams to drive

productivity and defend against cyber attacks. Today, more tech. tech workers are employed outside the tech sector than inside it. Cybersecurity and cloud. The parallel surge. If AI is the new engine, cybersecurity is the armor. With 94% of businesses using cloud services now vulnerable to cybercrime, demand for cybersecurity talent is outpacing supply. From May 24 to April 2025, 514,359 cybersecurity jobs were posted in the U.S.

but there are only 74 qualified candidates for every 100 roles. While globally, 3.5 million cybersecurity jobs remain unfilled. AI is reshaping this field too. 40% of cybersecurity skills didn't exist three years ago, and half of today's specialized training modules will disappear from entry-level positions within a few years as AI-enabled defenses take over simpler tasks. What this means for engineers? We're not in an oversaturated market. We're in a divided market. On one side, shrinking opportunities for traditional devs. On the other, explosive growth for engineers who can wield and strategically direct AI, ML, cybersecurity, and cloud technologies.

The most sought after engineers now aren't just coders, they're strategists. They know which tools to invest in, how to upskill teams, and how to deploy ITO create product advantages. Your move if you want to future-proof your career. 1. Upskill in AI, ML, cybersecurity, and cloud. 2. Show strategic impact, not just technical ability. Employers want leaders who can communicate the why of a tech direction as clearly as the how. Three, work where the growth is. These roles are expanding faster than the talent pipeline, a gap that ambitious engineers can turn into an

opportunity. Cotsmith alumni have been seizing this shift since 23, moving into AI leadership roles and specialized cybersecurity positions. Programs like the I&ML technical leadership program are designed to help engineers not only join this wave but lead it. The split in the tech job market isn't a threat. It's a map. Learn to read it and you'll find yourself on the side that's growing. Thank you for listening to this Hackernoon story, read by artificial intelligence. Visit hackernoon.com to read, write, learn and publish.