AI could slash half of tech jobs, warns ex-Google engineer Steve Yegge

Steve Yegge, a veteran software engineer with experience at Amazon and Google, has made bold predictions about AI's impact on the tech workforce. He warns that companies may soon cut half their engineering staff to boost efficiency. His claims come as AI adoption accelerates across the industry, sparking debates about productivity and job security.

Yegge, who worked closely with Jeff Bezos in Amazon's early days and later served as a Senior Staff Software Engineer at Google, argues that AI will reshape how tech firms operate. He believes 50% layoffs will become standard—far exceeding reductions seen during the Covid-19 pandemic. According to him, this shift is driven by a bottom-up innovation surge, where engineers leaving big companies launch startups that outperform established giants.

Despite his warnings, no major tech company has publicly tied recent layoffs directly to AI efficiency gains since 2022. Yet, executives have hinted at AI's role in restructuring, and many engineers report feeling both more productive and more drained. Yegge's perspective reflects a broader trend: firms are prioritising AI investments over labour, trading human capital for computing power.

Industry leaders describe smaller, more efficient teams thanks to AI tools. Yegge, also the author of Vibe Coding, a book on AI engineering, insists this transition is inevitable. He frames it as a necessary evolution, even as concerns about AI fatigue grow among workers.

Yegge's predictions highlight a growing tension between technological progress and job stability. If his forecast holds, the tech sector could see unprecedented workforce reductions in the name of efficiency. For now, companies continue investing in AI, while engineers adapt to a rapidly changing landscape.