The software engineering profession, once heralded as a golden ticket to financial stability and career success, is undergoing a seismic shift.

What was once considered a “life hack” for high earnings with relatively low barriers to entry has now become a battleground of oversaturation and heightened expectations. According to a recent piece in Manager.dev Newsletter, the industry is experiencing a “squeeze,” where the influx of talent—often of middling quality—has diluted the field, forcing a reckoning for those who cannot adapt.

This transformation is not merely a numbers game; it’s a fundamental evolution of what it means to be a software engineer in 2025. The same newsletter highlights that the job market is ruthlessly filtering out engineers who merely write code without a broader skill set, while rewarding those who blend technical prowess with product management and design thinking. Manager.dev Newsletter paints a stark picture: the days of coasting on basic coding skills are over.

The Oversaturation Challenge

For years, software engineering was the go-to career for anyone seeking a high-paying job with minimal formal education requirements. Bootcamps, online courses, and self-taught programmers flooded the market, drawn by the promise of six-figure salaries straight out of training. But as Manager.dev Newsletter notes, this accessibility led to an oversaturation of “mediocre talent,” creating a surplus of engineers who lack the depth or passion to stand out in a competitive landscape.

This glut of talent has tightened the job market, with companies becoming far more selective. The era of hiring anyone who can string together a few lines of code has ended. Instead, employers now seek individuals who can think holistically about products, collaborate across disciplines, and continuously upskill to keep pace with rapid technological change.

AI and the New Skill Imperative

Adding another layer of complexity is the rise of artificial intelligence tools, which are reshaping the software engineering landscape. Manager.dev Newsletter argues that while AI is not a direct threat to capable engineers, it is altering the nature of the work. Routine coding tasks are increasingly automated, pushing engineers to focus on higher-level problem-solving and innovation.

The newsletter emphasizes that genuine passion and a commitment to lifelong learning are now non-negotiable. Engineers who view their role as a craft—rather than a paycheck—are the ones who will thrive. This shift is a wake-up call, as the profession moves away from being a catch-all for quick career advancement and toward a more demanding, specialized field.

A Path Forward for Engineers

For industry insiders, the message is clear: adaptability is the currency of survival. The squeeze described by Manager.dev Newsletter is not just a temporary market correction; it’s a redefinition of value in software engineering. Those who can integrate technical skills with strategic thinking will find new opportunities, even in a crowded field.

Ultimately, this evolution may be a positive force, weeding out complacency and elevating the profession to new heights. As the industry matures, the focus shifts to quality over quantity, ensuring that software engineering remains a vital, innovative field for those willing to rise to the challenge.