AI is hollowing out the middle class of software engineering

The article reports that artificial intelligence is being put forward as a reason for layoffs and hiring freezes in the software engineering sector, based on a cited report. The report found that 59 percent of US hiring managers admitted they emphasize AI when explaining hiring freezes or layoffs. According to the article, this is because the explanation "plays better with stakeholders" than financial constraints. The article presents this as evidence that the technology is affecting employment prospects for mid-level software engineers.

The article also cites New York data on mass layoff notices. According to that data, of more than 160 companies that filed mass layoff notices, only one company checked the state's AI disclosure box. This indicates that while hiring managers may cite AI in their explanations, employers rarely formally attribute layoffs to AI in state filings. The discrepancy between the 59 percent figure and the one-out-of-160 disclosure rate is a key point in the article.

The article argues that AI is "hollowing out the middle class of software engineering," using the phrase to describe the impact on mid-level roles. It suggests that AI is being used as a convenient explanation for workforce reductions that may actually stem from financial constraints. The piece relies on the cited report and the New York data to support its argument, but it does not provide additional methodological details about either.