In the last year, the global tech industry has continued
through a painful correction, and Serbia is no longer watching it from the
sidelines. In 2025 alone, the global technology sector eliminated about 244,851
jobs, with analysts linking the cuts to economic pressure, cost discipline, and
accelerating AI adoption.
What makes this feel different in Serbia is the speed and
the concentration.
In March, Serbia saw a sharp wave of IT layoffs tied to
several foreign companies. Lottomatica shut down its branch in Serbia and
dismissed 348 employees in a single day, Zendesk closed its office with around
60 people affected, and Playstudios was expected to cease operations as well;
estimates from sector representatives put the total at roughly 450 to 550 lost
jobs within about ten days.
That number is not just a headline.
It is a serious signal.
Because once more than 500 people in one sector lose jobs
in such a short period, the conversation can no longer stay at the level of
isolated company decisions. It becomes a broader question about the future of
the labor market, the resilience of Serbia’s IT model, and the direction of
software development itself.
Serbia’s warning sign
The Serbian layoffs do not appear to come from a single
cause. Sector representatives cited post-acquisition consolidation, higher
labor costs, the reduction of state incentives, and growing automation
pressure, while some roles such as customer support, QA, and data migration
were described as especially exposed to AI-driven replacement.
That matters because Serbia’s IT growth over the last
decade was built partly on being a strong outsourcing and engineering
destination. If foreign firms now reassess whether Serbia remains the right
place for certain operations, while at the same time using AI to reduce
headcount globally, then the old growth formula starts to look less stable.
Global trend, local impact
What is happening in Serbia is not separate from the
world. Global layoffs remained severe in 2025, and analysts said many companies
were no longer just correcting over-hiring, but permanently eliminating roles
as they rebuilt around AI-first operating models.
This is the part developers should take seriously: the
issue is not only that companies want to save money. It is that many of them
are redesigning how work gets done, which means fewer routine tasks, leaner
teams, and higher expectations per engineer.
The bigger question
So what should we ask now?
Not only, “Will there be more layoffs?”
But also, “What kind of developer will still be in demand three years from
now?”
If AI can generate boilerplate, assist with testing,
speed up documentation, and reduce parts of support, QA, and repetitive
engineering work, then the market will increasingly reward people who can do
more than execute tickets. Companies will still need developers, but they will
likely need fewer people for purely repetitive implementation and more people
who can design systems, validate AI output, understand product context, and
make sound technical decisions.
What this changes for developers
For developers in Serbia and globally, this may be the
real transformation of IT.
The role is moving away from pure code production and
toward problem definition, architecture, integration, review, and
orchestration. In a market under pressure, the safest position is not being the
cheapest engineer or the fastest typist; it is being the person who can combine
technical depth, business understanding, and the ability to work effectively
with AI tools without losing quality and accountability.
That may be the uncomfortable truth behind this layoff
wave.
The future of IT is probably not smaller because software
matters less. It may become smaller in some areas because the same amount of
output can now be produced with fewer people, different skills, and much
stronger leverage from automation and AI.
And that leads to the real question Serbia should be
asking:
If the world is moving from volume-based hiring to
high-leverage, AI-assisted engineering, is our IT sector adapting fast enough,
or are we still preparing people for a version of the market that is already
disappearing?