What 2025 actually looked like in IT hiring
The layoff cycle that started at Meta in late 2022 never really stopped. Google trimmed again in early 2024, Amazon’s AWS and devices teams kept shedding through 2024 and into 2025, Microsoft moved gaming and Azure headcount around twice, and Intel announced manufacturing-side cuts that rolled through 2025. On top of that you had the post-ZIRP correction: free money ended in 2022, fintech and crypto-adjacent shops contracted hard through 2024, and the “growth at any price” hiring of 2021 quietly reversed.
AI is part of the story, but it isn’t the whole story. A lot of what people call “AI layoffs” is really companies normalising headcount after over-hiring, plus a separate pattern: routine work (CRUD endpoints, settings pages, basic dashboards, first-pass test scaffolding, simple internal reports) is now cheap to generate. Architecture, integration with paid systems, debugging legacy code that nobody documented, and customer-facing communication are still expensive. That gap is what shapes the 2026 market.
This post is about what to do with that gap if you write code for a living.
The Global IT Crisis: 2025-2026 Layoffs in Numbers
To understand the local market in Poland or Germany, we must first look at the epicenter. The layoffs of 2025-2026 are fundamentally different from the post-pandemic corrections of 2023. These are Structural AI Layoffs.
Tech Giants: The “Lean AI” Transformation
| Company | Layoffs (2025-26) | Primary Stated Reason |
|---|---|---|
| Intel | 15,000+ | Manufacturing restructuring & AI refocus |
| Amazon | 9,000+ (AWS/Live) | Automation of fulfillment & Cloud optimization |
| Meta | 5,500+ | “Year of Efficiency” Phase II (AI agents) |
| Microsoft | 4,000+ | Shift from legacy software to Copilot/Azure |
| Oracle | 3,000+ | Automation of cloud support and SaaS ops |
The European Ripple Effect
Europe has seen a slower but more permanent shift. Unlike the US, where “hire and fire” is common, European firms are using natural attrition and forced reskilling.
- Germany: Large automotive and industrial giants (SAP, Bosch) are replacing traditional back-office IT with custom LLM agents.
- Poland: As the primary outsourcing hub for the US and UK, Poland felt the global squeeze early. 74% of Polish firms slowed recruitment not because of lack of work, but because one Mid-level dev with AI now does the work of three Juniors.
Market Analysis: Global Trends vs. Local Reality
| Indicator | Global (2025) | Europe/Poland (2026) |
|---|---|---|
| Recruitment reduction due to AI | 65% | 74% |
| Planned hiring in specialized roles | 78% | 82% |
| Average productivity gain per employee | 35% | 40-50% |
| Demand growth for AI/ML Experts | +92% | +85% |
Sources: EY “Global AI Pulse” 2025, Hays Poland 2026, Gartner Tech Trends.
What’s driving these changes?
Changes in the IT market aren’t random. There are several key factors driving this transformation:
1. Automation of simple programming tasks
AI now writes template code, simple APIs, unit tests, and even documentation. What used to take hours now takes minutes. This doesn’t mean the end of programming - it means the evolution of the programmer’s role.
2. Cost optimization by corporations
Instead of hiring 10 programmers, companies now hire 4 specialists + AI. That’s math no CFO will ignore. Especially in times of economic uncertainty.
3. Correction in the SaaS and cloud market
Decline in cloud company valuations (SAP, Oracle, Salesforce) affects the entire IT ecosystem. Companies save where they can, and IT teams are often first on the cut list.
4. Market polarization
The most important conclusion: the market isn’t dying, it’s changing. Fewer offers for simple roles (junior developers, manual testers, support L1-L2), but record demand for AI/ML, cybersecurity, and cloud specialists.
Where’s the light in the tunnel?
Poland has one of the largest IT sectors in Europe - about 7-8% of GDP. That’s a huge industry with hundreds of thousands of workers. And critically:
- Aging society = labor shortage - AI is the answer to staffing shortages, not a threat
- Growing export of IT services to the EU - Polish companies are competitive
- 82% of IT companies plan to hire in 2026 - that’s data from the Hays Poland report
Conclusion: Those who adapt will find work. Those who fight AI will lose. This isn’t the end of the world - it’s a new beginning for those who adapt.
What actually works for staying employed
There is no AI-proof skill. Anyone selling you one is selling a course. What there is, looking at who kept their seat through the 2023-2025 cuts and who got hired back fast, is a short list of habits that correlate with not being on the next layoff slide.
Go deep in one stack, not wide across twelve
The engineers I see clearing senior rates in 2026 are the ones who are obviously the person you call for a specific thing. WordPress plus WooCommerce checkout customisation. Stripe and SCA edge cases. Postgres query plans and replication. Kubernetes networking and service mesh debugging. iOS background tasks. The pattern is the same: a stack a small business or a big team will pay real money to have fixed, and a few years of scars in it.
Chasing every framework cycle (Remix, then Qwik, then whatever ships next quarter) does the opposite. It produces a CV that reads like a tutorial index and nothing a hiring manager can place you against on a Monday morning.
Ship something visible
Recruiters and tech leads can sort a stack of CVs in about ten seconds each. Anything that lets them shortcut that helps you. In rough order of usefulness: a maintained open source repo people actually use, a blog with a dozen posts that solve specific problems and rank for them, a conference or local meetup talk on video, a side project that is live and has paying or active users. None of this needs to be impressive. It needs to exist and be findable when someone Googles your name.
LinkedIn-influencer posts about “10 prompts that changed my career” are not this. Hiring managers scroll past them.
Keep the referral network warm
Most jobs that pay well in 2026 are still filled through someone who worked with you before. That means staying on civil terms with old colleagues, replying to messages, doing the occasional code review favour, and showing up when a former teammate posts that their team is hiring. It is unglamorous and it is the single highest-ROI activity on this list.
Use AI as a tool, not a specialty
Use Copilot, Cursor, or Claude in your IDE the same way you use a debugger: every day, without making a personality out of it. The people who put “prompt engineer” on their CV in 2023 mostly went back to writing job titles like “senior backend engineer” by 2025, because the market priced prompt engineering as a feature of every developer’s job, not a separate role. Treat it that way.
What to actually do this month
- Pick the stack you already know best. Spend the next quarter getting noticeably deeper in it instead of starting something new.
- Write down three problems you have solved at work that other people in your stack also hit. Publish one of them as a post or a repo.
- Message three former colleagues you liked working with. No agenda. Just stay on the radar.
- Turn on Copilot or Cursor in your daily editor if you haven’t. Stop talking about it.
None of this is a guarantee. We don’t know what 2027 looks like, and anyone who tells you they do is guessing. The people I see surviving this cycle are the ones who shipped real things in a specific area, not the ones who learned the latest tool first.
A note on freelancing and B2B
A lot of Polish developers ask whether to flip to B2B or freelance now that the full-time market is tighter. The honest answer is that contracting works if you already have a network that will refer you work in the first three months and a stack you are clearly the person to call for. It does not work as an escape hatch when you cannot get a full-time offer, because the same buyers are picky in the same way. If you would not be a strong full-time hire in your stack right now, freelancing will be slower, not faster.
What to do NOW - concrete steps
Theory is theory. Time for practice. Here’s what you can do in different timeframes:
For developers (all levels)
- Tonight: Install Copilot and use it for one task
- This week: Track time with AI and without AI - write down results
- This month: Create one project with AI at the center
- This quarter: Decide on specialization and start a course
For managers/leads
- Today: Talk to your team about AI - what are they already using?
- This week: Introduce metrics - how much time does AI save?
- This month: Train the team in prompt engineering
- This quarter: Modify hiring criteria - look for “AI-enabled” people
For IT company owners
- Today: Check how competitors are using AI
- This week: Audit processes that can be automated
- This month: Train the team - this investment pays back in a month
- This quarter: Change the model - team of 5 devs + AI vs 10 devs
Deep Dive: Tools and Frameworks for 2026
To reach the 40-60% productivity gain mentioned earlier, you need to go beyond basic chat interactions. Here is a breakdown of the tools that are defining the professional landscape in 2026.
1. IDE Extensions: GitHub Copilot vs. Cursor
While Copilot remains the industry standard, Cursor has gained significant market share in Poland among elite developers. Its ability to “index” your entire codebase locally allows for context-aware refactoring that generic LLMs can’t match.
- Copilot: Best for autocomplete and boilerplate.
- Cursor: Best for complex architectural changes and “natural language” editing of multiple files.
2. Specialized AI Agents: Devin and OpenDevin Alternatives
By 2026, the first generation of autonomous AI agents has matured. We are seeing Polish software houses move away from hiring “Junior QA” roles in favor of AI Agent Orchestrators. These specialists manage tools like sweep.dev or OpenDevin to handle smaller bug fixes and library updates.
3. Localization and Global Reach: GPT-5 Translation & Beyond
For Polish IT companies exporting to the EU, translation is no longer just about text. High-fidelity localization of UI/UX, including cultural nuances in micro-copy, is now handled by multi-modal LLMs. Specialists who can “prompt” for cultural accuracy are seeing 30% higher demand.
What we don’t know about 2027
Predictions about what programming looks like in two years are mostly wrong, and the confident ones are the most wrong. Agents that can take a Jira ticket and ship a passing PR exist in demos and are unreliable in real codebases with weird auth, half-documented internal libraries, and a database schema someone normalised badly in 2017. Whether that gap closes in 2026, in 2028, or never closes for the messy 80% of business software, nobody actually knows.
What you can plan around is the next twelve months. Layoff announcements will keep coming in waves, mostly tied to fiscal-year planning at the big US firms in January and July. Junior hiring will stay tight because the tasks juniors used to do for free practice (settings pages, simple endpoints, basic CRUD UIs) are now the cheapest thing AI does well. Mid and senior hiring in specific stacks stays strong because the work that breaks in production still needs someone who has broken it before.
Stop trying to be future-proof. Be useful in something specific, ship visible work, and keep the people who already trust you on speed dial.
Summary
The honest version:
- The 2025 layoffs are part AI, part post-ZIRP correction, part fintech contraction; treating it as a single AI story is misleading
- AI is genuinely cheaper than juniors at routine work (CRUD, settings pages, basic reports). It is not cheaper than someone who can debug a legacy integration on a Friday afternoon
- “AI-proof skills” is a marketing phrase. Depth in one stack, visible work, and a warm referral network are the actual signals that correlate with staying employed
- Prompt engineering is a feature of every developer’s job in 2026, not a job title
- Anyone selling a confident 2027 prediction is guessing
What to do this week:
- Pick the stack you are already best in and decide to get deeper in it
- Publish one thing (post, repo, talk recording) that is searchable under your name
- Message two or three former colleagues you respect, with no agenda
- Turn AI tooling on in your editor and stop framing it as a strategy
Article updated: February 21, 2026 Author: Mariusz Szatkowski
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