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The Reality No One Wants to Admit 

Not slowly. Not gradually. 

They collapsed—down 70% in just 18 months. 

💀 RIP to bloated dev teams. 

💀 RIP to mid-level engineers coasting on outdated skills. 

💀 RIP to slow, overpriced software builds. 

The Reality No One Wants to Admit 

The middle-class engineer is disappearing. 

Not because of a bad economy. Not because of layoffs. Because they’re not needed anymore. 

💡 AI-driven development is replacing traditional coding. 

  • GitHub Copilot now writes 46% of all new code—with developers accepting AI suggestions 30% to 40% of the time (GitHub, 2023). 
  • ChatGPT-4 can debug code better than human engineers, scoring in the top 1% for coding problem-solving (OpenAI, 2024). 
  • Google reduced software engineering hiring by over 50% in 2023, shifting resources to AI research. 

💡 The economics of software development are changing. 

  • Microsoft’s revenue per employee hit a record $1.36M in 2023, thanks to automation and AI-powered workflows (Microsoft Earnings Report, Q4 2023). 
  • Klarna halted all new developer hires and laid off 10% of its workforce before its IPO, focusing instead on AI-powered automation (Klarna Press Release, 2024). 

💡 Companies are shipping faster, with fewer engineers. 

  • Startups now build MVPs 5x faster using AI-assisted development (Y Combinator, 2024). 
  • AI-assisted coding tools reduce dev time by 55% (McKinsey, 2023). 
  • Amazon’s AI-powered DevOps cut deployment times by 70%, leading to fewer engineers needed per project. 

Big tech isn’t downsizing—they’re optimizing. 

Why? 

Because a couple elite engineers with AI replace entire teams. 

The Great Engineering Divide 

🚀 The Elite (The ones thriving):
✔️ AI-powered Microsoft engineering teams
✔️ High-impact devs solving billion-dollar problems
✔️ Lean product builders shipping in days, not months 

⚠️ Everyone Else:
🔹 Using AI to ship solo
🔹 Building micro-businesses
🔹 Becoming product builders 

 

Software Engineering

2025 Software Engineering ≠ 2020 Software Engineering. 

 

The middle is gone. The top is elite. 

What Does This Mean for Businesses? 

If your company still relies on large, slow-moving dev teams, you’re burning resources. 

If your engineering processes aren’t AI-optimized, you’re already behind. 

The industry is shifting toward smaller, highly specialized engineering teams that leverage AI and automation to deliver impact at scale. 

Companies that embrace this AI-first approach will outpace, out-innovate, and outlast those that don’t. 

The question isn’t if you’ll adapt. 

It’s how quickly you’ll make the shift. 

Welcome to the Great Engineering Divide. 

 

Noa Davis

Copywriter specialized in tech.

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