Engineering headcounts in danger?
There have been significant job cuts at the London Stock Exchange Group (LSEG), engineering roles reduced by with more than 3,000 since the start of 2024 as part of a “tech revamp”, including increased use of AI. Much of the reduction has come from external contractors, as LSEG aims to cut higher costs associated with contracting, and strengthen their internal capabilities.
Although this is a single organisation, wider hiring data indicates an interesting trend. According to KPMG, engineering was one of only two sectors that saw increased demand for permanent staff last month. At the same time, investment in data centres is surging, with demand for global data centre capacity potentially tripling by 2030, opening up new areas of growth for engineering employment.
Deloitte’s 2026 Engineering and Construction Industry Outlook also highlights the deepening integration of technology into engineering roles, as well as a migration of engineering talent to tech firms due to their digital skills. As a result, engineering firms are increasingly competing not only with one another, but also with tech companies, for top-tier talent.
To stay competitive, Deloitte suggests that engineering firms may need ‘fresh human resources strategies, including rethinking onboarding, retention models and career pathways.’ While AI may cause job cuts in some areas, the battle for specialised engineering talent is likely to intensify.
For communicators, this shift highlights the importance of articulating a compelling employer brand for engineering talent. Clarity on mission and opportunities will be vital as firms compete directly against with tech companies for the same skills.
Another outage? Cloudflare
After last month’s AWS outage, this month we were treated to a three-hour outage of Cloudflare. With platforms such as YouTube, Google, ChatGPT and Sage affected, it’s likely you noticed this in your day last Tuesday.
Cloudflare, a global cloud services and cyber security firm underpins an estimated 20% of the world’s websites. Whilst there appears to be no foul play, with the company saying an “internal service degradation” was at fault, it does raise some concerns about the fragility of online infrastructure.
As the Guardian notes, some experts in cyber-resilience have warned that the internet has ‘become too reliant on a few big companies creating a “dependency chain”.’
Once again, this highlights the importance of communicating how your organisation’s systems and services sit within the broader technology ecosystem. Being able to respond quickly during outages, provide clear instructions, and guide people and teams to temporary workarounds or alternative tools can make your organisation more resilient and agile during unexpected disruptions.
AI bubble on the wobble
It’s up, it’s down, it’s on the edge. This is the AI bubble. Is it going to pop?
Nvidia reported better than expected earnings, leading to an upsurge in optimism for AI, and a rise in share prices. However, this bounce has been short-lived, with the FTSE 100 falling back down again, with ‘initial optimism fad[ing]’.
Meanwhile, news that PayPal cofounder Peter Thiel’s fund has sold their entire Nvidia stake suggests a coup may be on the horizon.
A challenging time could be ahead for tech firms. Many are already under significant pressure to boost productivity, implement AI at speed and maximise profit. For employees, this heightened volatility can undermine confidence and make organisations feel less stable.
It should be top of mind for communicators to try to shape a clear internal narrative around your organisation’s AI strategy, long term resilience and decision making. Helping your people to understand the processes and rationale behind your approach will be essential in keeping them engaged, bought in, and aligned with the future direction.
