Reasoning
As of now, tech firms are experiencing a wave of layoffs, with major players like Google and Meta reducing their workforce by over 10% in recent months. This trend, coupled with rising interest rates and economic uncertainty, may continue to pressure headcounts in the sector. Historical patterns show that during economic downturns, tech firms often prioritize cost-cutting, which could lead to a headcount decline exceeding 5% YoY in 2026.Key uncertainty
A potential rebound in tech demand driven by advancements in AI or new emerging technologies could significantly alter hiring trends, leading to growth rather than contraction in engineering roles.