Outlook Business Desk
Big tech firms such as Apple, Amazon, Google, Meta, Nvidia, Microsoft, and Tesla have reduced hiring of new college graduates by 50% compared to pre-pandemic levels, as AI reshapes workforce needs, according to a new report by SignalFire, a US-based venture capital firm.
The report says that new graduates now account for just 7% of hires of so called Magnificent Seven (Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA and Tesla), with new hires down 25% from 2023.
"The industry's obsession with hiring bright-eyed grads right out of college is colliding with new realities: smaller funding rounds, shrinking teams, fewer new grad programs, and the rise of AI," the report titled The SignalFire State of Talent Report - 2025 said.
At startups, new grads make up just under 6% of hires, with new hires down 11% from 2023 and over 30% from pre-pandemic levels in 2019.
Tech firms now prefer experienced professionals over new graduates to meet immediate project needs efficiently. "Today’s tech employers aren’t looking for potential, they’re looking for proof. That’s left new grads stuck in a Catch-22: you need experience to get the job, but you need the job to get experience," said SignalFire.
As AI tools take overmore routine, entry-level tasks, companies are prioritizing roles that deliver high-leverage technical output. Big Tech is doubling down on machine learning and data engineering.
Non-technical functions like recruiting, product, and sales keep shrinking, making it especially tough for Gen Z and early-career talent to break in, the report said.
As budgets tighten and AI capabilities increase, companies are reducing their investment in new grad opportunities. The latest data from the Federal Reserve Bank of New York shows that the unemployment rate for new college grads has risen 30% since bottoming out in September 2022, versus about 18% for all workers.