AI is disrupting hiring: How tech talent can stand out

AI is disrupting hiring: How tech talent can stand out

Layoffs continue to ripple across the technology sector, while companies simultaneously accelerate AI integration, investing heavily in new tools and infrastructure. AI accounted for 25% of all job cuts in March 2026 and 8% of all cuts in Q1.

Toptal's High-skilled Job Report for Q1 2026 finds that technology company layoffs have surged by roughly 140% quarter over quarter (QoQ) and year over year (YoY), underscoring the scale of disruption occurring alongside continued investment in AI.

Beneath the surface, however, the report suggests that demand for experienced technology and professional services roles is increasing even as overall job opportunities continue to decline.

The report's methodology draws on data from Layoffs.fyi, Indeed, and Lightcast, as well as qualitative insights from Toptal executives about what they are seeing in the marketplace. For job seekers and employers alike, understanding the drivers behind this shift is crucial for landing jobs and building teams. This article examines those drivers and distills insights for companies and workers.

The New Baseline: Fewer Roles, Higher Expectations

As AI automates tech and operational tasks, many employers are looking for professionals who can operate at a higher level from day one. Engineers who understand how to build, manage, and collaborate with AI systems rather than simply write code. Product managers who make sure that AI initiatives deliver measurable business value. Data specialists who help organizations design, train, and govern AI models.

This translates to more opportunities for senior workers. Demand for technology and professional services personnel with at least five years of experience increased by 10.5% QoQ and 6.4% YoY, according to Toptal's report.

There is also a clear shift in how companies evaluate candidates. Formal job titles are becoming less important than demonstrable AI-related skills. Hiring managers care less about traditional credentials and increasingly want to see how candidates apply their knowledge in real-world situations: Portfolios, open-source contributions, freelance work, and hands-on project experience are the modern differentiators.

For job seekers, this shift from credential-based hiring to capability-based hiring requires them to show evidence of the work they are applying to do, such as building an AI-powered application or securing cloud environments. Doing so offers a significant advantage, even for those without a traditional career trajectory.

The report suggests that although demand has slowed for some skill sets and grown for others, organizations are shifting from volume hiring to leaner teams of versatile senior professionals who pair deep domain expertise with AI fluency, business acumen, and cross-functional agility. Organizations that successfully integrate AI into their workflows tend to treat automation as a tool that amplifies human expertise rather than replacing it. In that environment, professionals who understand both the technology itself and how to apply AI tools to improve efficiency and solve complex problems have a clear advantage.

Why Companies Are Looking for Talent Everywhere

Employers now face the challenge of not only redefining the talent they need but also finding it. Specialized talent remains difficult to source, with roles that require technical depth and experience with AI systems the most challenging.

Many organizations are expanding their recruiting strategies beyond traditional geographical boundaries. Rather than competing for a limited number of candidates in major tech hubs, companies are leaning into remote hiring and distributed teams to expand talent pools. A Datapeople study found that remote job postings increase the candidate pool by 125%.

Toptal's report suggests that this shift isn't just a response to talent shortages; it's an emerging structural feature of the labor market. Postings for remote and hybrid roles in the technology and professional services sector rose 8.9% QoQ and 4.8% YoY, in Q1.

The geographic shift means job seekers are no longer limited to local opportunities. High-skilled workers now have access to roles with companies worldwide, particularly in fields where expertise remains scarce.

But access alone isn't enough. Candidates must align their skills with demand. The report points to AI systems, cybersecurity, and data engineering as particularly strong opportunities in fields that are actively hiring despite broader market uncertainty. While the report found that overall U.S. job growth is projected to decline moderately through Q2 2026, demand for experienced remote and hybrid technology and professional services roles is expected to increase, albeit at a slower pace than in previous years.

That means building skills that go beyond traditional expectations: developing hands-on experience with AI tools, working across the full life cycle of systems, and demonstrating the ability to apply technical knowledge to real business problems.

Adaptability Is the New Core Skill

For job seekers navigating today's volatile market, the message is simple: Opportunities exist for highly skilled, specialized roles, but they require a new mix of capabilities. For companies, the challenge is building effective teams in an increasingly AI-driven environment where specialized talent is both in high demand and limited supply. For workers, it means developing the skills needed to take on work that is more complex and AI-integrated than ever before.

As a result, adaptability has become the most valuable asset. Companies and workers who can evolve with emerging technologies will continue to have an advantage, while those who cannot will find fewer opportunities in a market that is becoming more selective and more specialized.

This story was produced by Toptal and reviewed and distributed by Stacker.

Copyright 2026 Stacker Media, LLC

This story was originally published May 13, 2026 at 8:00 AM.