A growing number of young college graduates aiming to break into the tech industry are finding themselves edged out—not by human competition, but by artificial intelligence (AI).
According to a new report titled “State of Tech Talent: 2025” by San Francisco-based venture capital firm SignalFire, the hiring of entry-level graduates at major tech giants like Google, Apple, Meta, Microsoft, and Tesla has plummeted by more than 50% since 2022.
Once considered a rite of passage for computer science graduates, the tech industry’s open-door policy for new talent is rapidly closing. The report points to shrinking budgets, smaller teams, fewer graduate programs, and the accelerated use of AI tools as major drivers of this shift.
In 2023, fresh graduates accounted for 25% of new hires at Big Tech firms. Today, they make up a mere 7%. Even startups are scaling back. Hiring of recent grads at Series C-funded startups dropped to 6%, compared to 30% in 2019.
AI’s growing capabilities are replacing traditional entry-level tasks, forcing companies to focus on roles that yield high-leverage technical output, such as machine learning and data engineering. Meanwhile, non-technical departments like recruiting and sales are shrinking.
The report also reveals a troubling perception gap: 55% of employers believe Gen Z workers struggle with teamwork, and 37% of managers say they’d prefer AI over a Gen Z hire.
LinkedIn executive Aneesh Raman echoed these concerns in a recent op-ed, warning that AI is likely to erode early-career opportunities across sectors beyond tech—including finance, travel, and food services.
