Tech Companies Regret Firing Engineers for AI: The Quiet Rehiring Nobody's Talking About [2026]

Tech companies that fired engineers for AI are now quietly rehiring, as the 'AI replaces engineers' thesis has proven flawed. The industry laid off over 260,000 workers in 2023, citing AI automation, but is now scrambling to undo the damage. Companies like Klarna and Apple have struggled with AI-driven improvements, highlighting the 'prototype illusion' where AI generates software that looks complete but lacks underlying engineering expertise.