For decades, a computer science degree was a sure path to a secure, high-paying career with steady demand and plenty of career growth opportunities. In an uncertain economy, it seemed like a smart move for a young professional.
But in 2025, that certainty is slipping fast.
The rise of generative AI has reshaped not only how we work, but who works. Entry-level software engineering roles, once considered a guaranteed foot in the door, are vanishing. And the irony is real: AI is replacing the very jobs that built it.
The numbers are telling. In June, the US unemployment rate for 20- to 24-year-olds spiked to 8.2%, nearly double the national average. College grads entering the workforce are struggling — especially in tech. While sectors like healthcare and hospitality added jobs, professional and business services, a category that includes many engineering and technical roles, lost 17,000 jobs in June alone.
And this isn’t a case of cyclical layoffs. Companies are actively cutting white-collar roles, including software engineering positions, opting not to retrain but to replace them with AI. Many firms are finding they don’t need large teams of coders when AI can generate usable code in seconds.
At the same time, we’re seeing record investments in AI talent. Meta’s $14 billion acquisition of Scale AI, described by some as a move to bolster its model training capabilities, was less about the tech itself and more about securing elite AI engineers. It may be the largest acquihire in tech history. But even here, the opportunity is reserved for a select few with highly specialized AI skills.
The AI boom isn’t following the patterns of past tech cycles. AI startups don’t look like the SaaS companies of the last decade. They’re scaling lean, sometimes with just dozens of employees, while still commanding multibillion-dollar valuations. The traditional model of high-growth companies expanding headcount, investing in people teams, and broadly distributing equity isn’t playing out the same way this time.
That shift poses hard questions for employers and founders. What skills are worth investing in? What roles are future-proof? And how do you build a career path — or a company — when the old playbook doesn’t apply?
Across industries, America’s largest companies are cutting their workforces. And AI is reshaping white-collar work well beyond tech.
In conversations with leaders, I’ve heard a rough breakdown of the workforce today:
- A third are openly using AI at work.
- A third are using it quietly, but not sharing with managers or peers.
- A third aren’t engaging with AI at all.
It’s that last group that raises the biggest questions. This isn’t a passing trend. The AI shift is structural and it’s moving fast.
We’ve seen hot job markets cool before. The difference now is speed. The AI cycle feels faster. We’ve already watched the rise and fade of hot roles like “prompt engineer,” once hailed as the future of work, now a baseline skill for anyone using generative AI tools.
Looking ahead, the most valuable skill might not be coding, or even knowing how to use AI, but the critical thinking to adapt as the market keeps shifting. The ability to learn, assess, and apply new tools will matter more than memorizing syntax.
We may not have all the answers yet. But one thing is clear: The days of assuming a technical degree guarantees job security are over.
The AI era isn’t just a technological shift, it’s a leadership challenge. For founders and executives, the imperative isn’t to predict every change, but to build organizations resilient enough to adapt to them. That means investing in adaptable teams, rewarding critical thinking, and staying grounded in what your business — and your people — need to thrive in a shifting market. The companies that get this right won’t just survive the AI transition, they’ll define it.
Where Do You Go From Here?
At Sequoia, we believe the AI era calls for more than just new tools. It demands new ways of thinking about people and data. Just as AI models rely on well-labeled data to generate insights, organizations need structured, meaningful employee data to make smarter decisions.
That’s where we come in. By integrating our clients’ workforce data into our advisory, we help uncover patterns, surface opportunities, and guide strategic decisions — all with the speed and clarity today’s market demands.
If you’re rethinking how your team is built or where to invest in talent, we’d love to help. Connect with a Sequoia advisor to explore how your people data can become a strategic advantage in the age of AI.
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