Is Becoming an Engineering Manager Still Worth It in Australia?

By TheDriveGroup

•

17 July 2025

At TheDriveGroup, we speak with hundreds of Software Engineers and Engineering Managers across Australia every year, and there’s one question we hear time and time again from senior developers:

“Is it worth stepping into an Engineering Manager role anymore?”

And it’s a fair question.

The Engineering Manager (EM) role has undergone significant changes over the years, and for many in the software engineering space, it’s no longer the natural next step on the career ladder it once was.

Whether you’re actively searching for engineering manager jobs in Australia or trying to build and hire the right technical leadership team, here’s a breakdown of what’s really going on in the market today and what it means for your career (or team).

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How the Engineering Manager Role Has Evolved in the Tech Industry

Not long ago, Engineering Managers were simply senior developers or tech leads who took on a bit of extra responsibility, helping out with project delivery, team collaboration, and a touch of people management.

But then things shifted.

As engineering teams scaled, organisations began splitting the role:

Some leaders focused on technical architecture and code quality
Others leaned into people management and delivery oversight

And that structure worked… until it didn’t.

Post-Layoffs and Budget Cuts: One Role, Too Many Hats

With hiring freezes, budget constraints, and tech layoffs over the past couple of years, companies started asking their Engineering Managers to do more with less.

We regularly speak to EMs across Sydney, Melbourne and Brisbane who are now expected to juggle roles that once belonged to 2-3 people.

Roles such as:

Managing team performance, culture, and growth
Overseeing delivery and timelines (without a Delivery Manager)
Shaping the technical vision and engineering roadmap
Writing code (but not too much code)

ALL with zero control over headcount, budget, or delivery deadlines.

AND still 100% accountable for results.

Sometimes even across multiple teams.

The Atlassian Example: What Happened to 480 Engineering Managers?

One of the clearest signals of this shift came in 2023, when Atlassian removed 480 Engineering Manager roles, publicly announcing a restructuring that prioritised “frontline” technical roles over middle management.

Former EMs at Atlassian told us they were given two options:

Return to hands-on coding (and not just code, code very well).

Leave the company altogether.

And they weren’t alone. We’ve seen similar stories across the tech industry in Australia, especially in larger enterprise and scale-up environments.

So… Is It Still Worth Becoming an Engineering Manager?

The reality is: the Engineering Manager role is harder than ever.

If you’re already in the role, you’ve probably felt the pressure of more responsibilities, less support, and unclear career progression.

And if you’re a Senior Software Engineer considering your next move, it’s worth seriously weighing up:

Do you want to lead people or build great products?
Do you enjoy performance reviews, org charts, and hiring plans, or coding and solving technical challenges?

The good news? There are multiple pathways up the ladder. You don’t have to become an Engineering Manager to grow your career in tech. In fact, many organisations now offer Staff Engineer, Principal Engineer, and Tech Lead roles as alternatives to traditional management tracks.

Our advice for Engineering Leaders & Hiring Managers in Australia

If you’re building out your team and looking to hire a strong Engineering Manager in Australia, it’s critical to: