Is Artificial Intelligence replacing fresh tech talent? A new industry report reveals a concerning dip in hiring of recent college graduates by Big Tech firms, signaling a major shift in how companies approach talent acquisition.
Entry-Level Hiring in Tech Sees Major Decline
A recent report titled “State of Tech Talent: 2025”, released by San Francisco-based venture capital firm SignalFire, reveals a startling trend—entry-level hiring at major tech companies like Google, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla has dropped by over 50% since 2022.
This shift is largely driven by:
Shrinking budgets
Smaller team sizes
Fewer graduate programs
Rapid advancements in Artificial Intelligence
Where fresh graduates once enjoyed wide opportunities in tech, today’s reality is far more competitive. Entry-level hires now constitute just 7% of total hiring at major tech companies, compared to 25% in 2023.
What the Data Shows
SignalFire’s AI-powered analytics engine, Beacon, tracked data across 650 million professionals and 80 million organizations to identify these trends. Here are some key insights:
Startups that previously favored new grads are now pulling back.
Startups funded by top VC firms have seen graduate hiring drop to 6% in 2024, from 11% in 2023 and 30% in 2019.
Even top-tier computer science graduates from elite universities are facing reduced opportunities in junior roles.
AI’s Role in the Shift
AI is automating many routine, entry-level tasks, pushing companies to focus on:
Machine Learning
Data Engineering
High-leverage technical roles
At the same time, non-technical functions such as recruiting, product, and sales are experiencing cuts, creating additional challenges for new entrants.
Furthermore, a perception gap is adding to the issue. According to the report:
55% of employers believe Gen Z struggles with teamwork.
37% of managers claimed they would choose AI over hiring a Gen Z employee.
What It Means for the Future Workforce
While AI hasn’t entirely replaced job categories yet, its growing influence is reshaping how careers begin—especially in the tech sector. As highlighted by LinkedIn’s Chief Economic Opportunity Officer, Aneesh Raman, the loss of traditional entry-level roles could extend beyond tech into industries like finance, travel, food, and professional services.
Final Thoughts
The hiring freeze for freshers is a signal that both academic institutions and aspiring tech professionals must adapt. Upskilling in AI-related fields, focusing on collaboration, and building real-world project experience may become essential for securing a foothold in the new tech landscape.