A recent report by General Assembly paints a stark picture for the tech industry: over half of tech hiring managers believe their companies are likely to go through layoffs within the next year. The reasoning? A mix of outdated skill sets, underperformance, remote work, and especially jobs that artificial intelligence could potentially take over. In an industry moving faster than ever, it’s becoming clear that those unable to keep up with emerging technologies, particularly AI, may find themselves on the outs.
At the same time, there’s a paradox at play. While many anticipate job cuts, most hiring leaders also agree that AI will create new opportunities. Nearly 70% expect AI to generate fresh roles, and over three-quarters believe those facing layoffs might be reskilled instead of permanently replaced. The challenge lies in how fast businesses are adopting AI while employees scramble to keep their skills relevant. General Assembly’s report points out that the skills most in demand are also the ones in shortest supply. AI development, for instance, tops the list of both the most sought-after and most lacking technical capabilities in the workforce today.
But it’s not just about coding and machine learning. Soft skills like adaptability, strategic thinking, and problem-solving are also in short supply, adding another layer to the talent crisis. As companies push to innovate and streamline, they’re realizing it’s not enough to have technical expertise—workers need to be able to think flexibly and solve complex problems in real time.
The broader tech job market remains unpredictable. An earlier report from EY warned that while AI may prompt hiring in some areas, it could also trigger job losses elsewhere, leaving hiring managers in a bind. Companies eager to bring in AI talent often end up in costly bidding wars, further complicating their workforce strategy.
In some firms, like Shopify and Fiverr, leaders are now drawing a hard line: prove AI can’t do the job, or hiring won’t happen. They’re urging existing staff to upskill and embrace AI tools as essential parts of their workflow. AI literacy isn’t just a bonus anymore—it’s the baseline. The takeaway? In a tech world that’s evolving by the day, staying still isn’t an option. Those willing to adapt may not only survive the shift—they might thrive in it.
