66% of AI Specialists Fear Layoffs. So Why Are Software Engineers Feeling Safe?
A new survey of India-based professionals reveals a paradox at the heart of the AI boom: employees building artificial intelligence are among the most concerned about potential job cuts.
The rapid rise of artificial intelligence has created a widespread perception that AI-related roles are among the safest careers in technology. A new survey suggests the reality may be more complex.
According to a study by professional networking platform, 66% of employees working in artificial intelligence and machine learning roles expect a layoff or significant headcount reduction within their teams over the next three to six months. The findings place AI professionals among the most concerned groups in the technology workforce despite the growing demand for AI expertise across industries.
The survey, which covered 1,552 India-based professionals in July 2026, highlights growing uncertainty across the sector as companies continue to balance AI investments with workforce restructuring and cost optimization efforts.
AI Professionals Rank Among the Most Anxious Groups
The survey found that employees working directly on AI technologies are nearly as concerned about layoffs as workers in functions traditionally viewed as more vulnerable to workforce reductions.
Key findings include:
- 68% of employees in sales and marketing expect layoffs or headcount reductions.
- 66% of AI and machine learning professionals expect cuts.
- 65% of workers in product and design functions anticipate reductions.
AI and ML emerged as the second-most concerned workforce segment in the survey. The results challenge the assumption that working in AI automatically provides greater job security.
As enterprises accelerate AI adoption, many professionals in AI-related roles appear to believe they remain exposed to the same economic and organizational pressures affecting the broader technology industry.
Engineering and Data Teams Report Lower Concern
While AI has often been discussed as a technology capable of automating engineering and analytical tasks, employees in those functions reported comparatively lower levels of concern.
According to Blind’s findings:
- Only 24% of engineers described layoffs as “very likely”, the lowest figure among all surveyed functions.
- Overall layoff concern among engineers stood at 58%, below the survey average.
- Data and analytics teams reported an at-risk sentiment level of 51%.
- Four in ten data and analytics professionals said layoffs were unlikely, the highest confidence level recorded among surveyed groups.
The findings suggest that some of the roles widely expected to be disrupted by AI currently feel more secure than the teams responsible for developing AI systems.
Company-Level Differences Reveal Uneven Sentiment
The survey also highlighted significant variations in employee confidence across technology companies.
Among organizations where employees reported the highest levels of concern:
| Company | Layoff Concern Level |
| Salesforce | 81% |
| Oracle | 80% |
| Uber | 77% |
| PayPal | 75% |
At the opposite end of the spectrum:
| Company | Layoff Concern Level |
| Zoho | 9% |
| Freshworks | 44% |
Blind noted that companies with fewer than ten survey responses were excluded from its company-level analysis.
The data points to notable differences in how employees perceive organizational stability, even within the same technology sector.
Early Warning Signs Matter More Than Formal Announcements
The survey found that employee concerns are often driven by indirect signals rather than formal redundancy announcements.
Among respondents expecting workforce reductions:
- 27% cited hiring freezes as the strongest warning sign.
- 24% pointed to budget cuts or reduced headcount targets.
- Only 9% identified formal layoff announcements as the primary indicator.
The findings suggest employees are paying close attention to changes in recruitment activity and spending priorities as indicators of future workforce decisions.
AI Optimism Meets Workforce Uncertainty
The survey arrives at a time when companies worldwide are investing heavily in AI capabilities while simultaneously reassessing workforce structures and operating costs.
Comments shared on Blind reflected the uncertainty many professionals feel about long-term career prospects. One professional from Coinbase suggested machine learning specialists should focus on strengthening complementary technical skills, while another respondent from Avalara highlighted the perceived value of highly specialized AI expertise.
The broader message from the survey is not that AI jobs are disappearing. Instead, it highlights how concerns about workforce reductions extend across the technology sector, including among professionals building the very technologies reshaping the future of work.
As organizations continue integrating AI into products, operations, and business models, employee sentiment suggests that demand for AI skills alone may not eliminate concerns about job security.
Strategic Implications: Navigating Sentiment and Retaining Core AI Talent
While macroeconomic adjustments affect overall tech headcount, high levels of anxiety among core AI developers can derail critical product roadmaps. When technical talent senses instability, retention drops and productivity stalls.
To maintain organizational stability while optimizing workforce costs, leadership teams should take proactive steps:
1. Transparent Communication on Investment Priorities
When budget adjustments or hiring freezes occur, clear messaging is essential. Defining how core technical projects align with company strategy prevents top-tier developers from misinterpreting administrative adjustments as impending layoffs.
2. Focus on Cross-Functional Skill Integration
Encouraging AI specialists to build domain knowledge alongside their core technical skill set increases their operational impact. Developers who understand both product architecture and business outcomes prove far more resilient during structural shifts.
3. Monitoring Operational Early-Warning Signals
Since employees measure stability through subtle operational changes like hiring pauses or software consolidation, management must proactively address team concerns before false rumors erode workplace culture.
The FirstCall HR Perspective
At FirstCall HR, we understand that managing modern tech organizations requires balancing workforce agility with employee trust. High anxiety among core technical teams often leads to unforced attrition of key performers who drive core innovation.
Through our signature low-submit, high-hit approach, we help enterprises evaluate true skill capabilities, map strategic talent pipelines, and navigate structural changes cleanly. We partner with leadership to secure pre-vetted, high-impact professionals who provide stability and long-term business growth.
Build a stable, resilient workforce architecture.
