Tech Layoffs in 2025 and the Rise of AI Jobs: What the Data Really Shows
More than 130,000 technology workers lost their jobs in the first quarter of 2025 alone. At the same time, postings for AI engineer, machine learning engineer, and LLM engineer roles grew 150% year-over-year. The market is not collapsing — it is restructuring around artificial intelligence.
The Layoff Landscape: 2025 by the Numbers
The wave started in late 2024 and accelerated through 2025. Companies including Intel, Cisco, SAP, and several mid-size SaaS firms announced headcount reductions ranging from 5% to 20% of their workforces. The cuts hit hardest in non-technical roles — marketing, HR, customer success — but also swept through legacy software engineering teams working on products with no AI roadmap.
According to tracking data from layoffs.fyi, over 350 technology companies conducted layoffs between January 2025 and September 2025. The total affected workforce exceeded 180,000 people. The pattern is clear: companies are shedding generalist software roles while simultaneously opening specialized AI and machine learning positions.
Why AI Jobs Are Growing While Tech Jobs Contract
The explanation is not complicated. Enterprise investment in artificial intelligence did not slow in 2025 — it accelerated. Gartner estimated that global enterprise AI spending reached $297 billion in 2025, up from $184 billion in 2024. Companies cutting 500 software engineers are simultaneously posting 50 machine learning engineer and LLM engineer positions. The ratio of cuts to AI hires is roughly ten to one, but the AI roles command significantly higher compensation and longer-term security.
The Indeed AI Tracker confirmed this dynamic: by December 2025, 4.2% of all job postings on the platform included AI-related keywords — an all-time high. Nearly 45% of data and analytics job postings now contain AI-related terms. For workers displaced by layoffs, this shift represents both a challenge and a significant opportunity.
The DFW Tech Market: A Closer Look
The Dallas-Fort Worth region felt the effects of national tech layoffs but also emerged as one of the stronger secondary AI hiring markets. Companies including AT&T, Texas Instruments, and a growing number of fintech and healthtech firms continued to hire for machine learning and AI roles throughout 2025. Regional IT staffing firms like STAR Workforce Solutions reported increasing demand for AI-adjacent contract roles even as traditional IT staffing slowed.
For DFW-specific IT opportunities including non-AI roles, DFW IT Jobs remains a strong regional resource. For roles where AI, machine learning, or GenAI are central to the position, Rebuix applies strict AI relevance filtering so you only see roles where AI is genuinely the job — not just a buzzword in the posting.
What Laid-Off Tech Workers Should Do Now
The most consistent advice from hiring managers in 2025: do not wait for the market to return to what it was. The market that existed in 2021 and 2022 — abundant generalist software engineering roles, inflated compensation, minimal differentiation — is not coming back. The new market rewards AI fluency above almost everything else.
Workers with 3-5 years of Python experience and no AI background can upskill meaningfully in 3-6 months. The core areas to prioritize are PyTorch fundamentals, understanding of transformer architectures, RAG (Retrieval-Augmented Generation) system design, and practical MLOps tooling including MLflow and basic model deployment. This is not about becoming an AI researcher — it is about becoming an engineer who can build production systems that incorporate AI models.
Platforms like AI Learn Hub have built structured learning paths specifically for engineers making this transition, with hands-on projects that produce portfolio work employers actually want to see.
The Bottom Line
The tech layoffs of 2025 are painful for the individuals affected. But the broader market signal is unambiguous: AI and machine learning skills are the most valuable professional asset in technology right now. Workers who use the disruption as a forcing function to build those skills will look back at 2025 as the year that changed their career trajectory — for the better.
Browse verified AI, ML, and GenAI job opportunities at Rebuix. Every role is scored for genuine AI relevance — no AI-washed listings.