In the current wave of tech layoffs, the conversation is no longer about a cyclical downturn on the way to recovery, but about a turning point. Generative AI is far more than advanced automation – it is fundamentally reshaping the structure of the market and the types of workers it requires.
Many engineers fear that their profession will disappear. They are not wrong – but they are missing a critical inflection point: out of this drastic shift in their role, their next profession is likely to emerge.
According to TechCrunch, more than 22,000 high-tech employees worldwide were laid off in the first half of 2025, including hundreds in Israel. Intel, Amazon and Microsoft have cut basic development, QA, support and service roles – areas where large language models can now perform the work quickly and at low cost. Amazon alone has cut roughly 14,000 employees (including 1,800 engineers).
Globally, the pattern is similar: an analysis by The Economist shows that between 30% and 45% of tech roles in the U.S. have undergone “redefinition” in the past two years, largely due to the penetration of generative AI at every layer of software – from the interface to infrastructure management. This illustrates the depth of the structural shift underway in the labor market.
Immediate disruption – and an exceptional opportunity
As one door closes, another opens. McKinsey reports that about 64% of the world’s largest companies have already increased their hiring budgets for AI and data roles – even as they reduce overall headcount.
This marks a fundamental difference from past technological revolutions. With the internet and smartphones, the change was gradual: first growth, then a slowing. The AI revolution works in reverse: it wipes out entire roles first and only then creates new ones. The result is sharp and immediate disruption – but also a remarkable opportunity for the emergence of a new profession: the hybrid engineer.
The hybrid engineer is defined by far more than simply “using AI tools” or experimenting with them. This individual combines technological expertise, the ability to work with complex models, systems thinking and human intuition.
We can already see new roles emerging – prompt engineer, chief AI officer, AI compliance specialist – but these are only the early signs. Gartner estimates that by 2027, about 80% of engineers will require retraining – a level of change unseen in any previous technological revolution.
A glimpse of the future: the need for local leadership
Israel may emerge as one of the major beneficiaries of this shift. The local ecosystem is built on agility, fast learning and small teams capable of integrating AI at a pace that is often impossible for global corporations.
After nearly two years of economic uncertainty, political turmoil and war, Israel has a rare opportunity to redefine its competitive edge. A global market now directing investment toward AI and cyber naturally positions Israel as a potential leader – provided that we train the workforce, update academic and professional curricula and build smart regulation that supports innovation.
For tech workers themselves, the message is simple: AI will not replace you – it will replace the older version of you. Those who learn to work alongside these systems rather than against them, who acquire new skills and embrace hybrid capabilities, will remain relevant and may even become central players in the industry.
We are not in a “layoff revolution”; we are in a revolution of professions. Whoever understands this in time will gain the career of the next decade.
Source- https://www.ynetnews.com/opinions-analysis/article/ryb000l51111l