Software Engineering Faces ‘Depression’ Amid 114,000 Layoffs

UPDATE: Renowned software engineer Martin Fowler warns that the software industry is experiencing a “depression” due to plummeting investments and massive layoffs. Speaking on the latest episode of The Pragmatic Engineer podcast, Fowler revealed that 114,000 tech employees have been laid off in 2025 alone, highlighting a stark contrast to the 153,000 layoffs recorded throughout all of 2024.

This alarming trend comes amidst a backdrop of uncertainty in the tech sector, where companies are tightening their budgets and shifting focus primarily towards artificial intelligence (AI). Fowler emphasized that while AI investment is surging, it remains disconnected from overall software development progress. “While businesses aren’t investing, it’s hard to make much progress in the software world,” he stated, underscoring the challenges junior engineers now face.

Fowler, who is the chief scientist at Thoughtworks and a pivotal figure in the creation of the Agile Manifesto, expressed concern for new developers entering the field. “The unpredictable AI bubble presents challenges and uncertainty for junior software engineers,” he said. He noted that the unpredictable nature of AI advancements complicates the landscape even further.

For junior engineers navigating this tumultuous environment, Fowler offered crucial advice: seek mentorship from experienced developers. “A good experienced mentor is worth their weight in gold,” he emphasized. As technology rapidly evolves, understanding the outputs generated by large language models (LLMs) can be daunting for newcomers, making mentorship vital for their success.

Despite the current challenges, Fowler remains optimistic about the future of software development. “I don’t think AI is going to wipe out software development,” he asserted. He believes that core skills required for success in the industry remain unchanged and that there is still “plenty of potential in the future.”

As the technology landscape continues to evolve, the focus shifts to how junior engineers can adapt and thrive in this new environment. Experts suggest that those entering the field should stay informed about industry trends and actively seek opportunities for professional development and mentorship.

As this situation unfolds, industry watchers and aspiring software developers alike are urged to stay tuned for updates on the state of the industry and the paths ahead for new talent. The urgency of Fowler’s message resonates strongly in a time when the tech sector is undergoing significant transformation.