The latest Talenza Cyber Wrap report highlights that Australia’s cyber security workforce is experiencing minimal growth amid changes driven by AI adoption and cost-saving measures.

According to the 2025/26 edition of the Cyber Wrap, the workforce expanded by just 0.2% over the financial year, with redundancies particularly evident at larger consulting firms.

Flat growth

The report notes that the cyber security sector in Australia is now in a transition period. In contrast to previous years, when organisations rapidly expanded their cyber security efforts, many are now entering a stabilisation phase. This shift has led to a stronger focus on cost control and embedding existing capabilities, rather than investing in new projects and large-scale hiring.

Opportunities for early-career professionals are narrowing, mainly due to increased automation and the subsequent reduction of entry-level roles. The report indicates that Tier 1 and Tier 2 Security Operations Centre (SOC) functions, which traditionally provided a starting point for many entering the industry, are being automated away. This trend is described in the report as ‘squeezing out’ entry-level positions.

AI’s influence

One of the most notable changes highlighted in the report is the growing ubiquity of AI-powered detection and automation across cyber security functions. From governance, risk and compliance (GRC) roles to penetration testing, AI skills are now considered essential.

As a result, proficiency with AI tools and systems has transitioned from a desirable asset to a baseline requirement across the sector. Employers are prioritising candidates who can both leverage AI tools and adapt to a rapidly changing technological landscape.

Industry perspective

Chelsey Costello, Manager in Technology (QLD) at Talenza and Brisbane Chapter Lead for AWSN, said: “Cyber teams are moving from uplift to maintenance. Leaders are under pressure to do more with less, while candidates are facing a market that demands high skills and resilience. The big challenge for Australia is ensuring our next generation of cyber talent doesn’t get lost as automation accelerates.”

Her comments underscore the dual challenge faced by both employers and candidates: maintaining robust cyber security operations with leaner teams, and finding viable career pathways in a market where automation is rapidly changing role requirements and expectations.

Riki Blok, Manager in Technology (NSW) at Talenza, noted the likely impact of these changes on the workforce in the coming financial year. Blok said: “Financial Year 25/26 will be an interesting one as AI is shifting demand for roles. Combine this with a number of businesses shrinking their function it makes for a very client led recruitment market”

Salary benchmarks

The Talenza Cyber Wrap 2025/26 also includes a salary guide that charts benchmark compensation data for chief information security officers (CISOs) and human resource leaders. Covering the bulk of roles across the market, this data is aimed at helping employers budget effectively and remain competitive in a market that has become more selective due to slowed growth and changing skills needs.

Future workforce implications

The shifting market environment raises questions about the security industry’s ability to attract and retain new talent. Automation is reducing the number of roles available to graduates and those commencing cyber careers, potentially creating a gap in future workforce capability. While organisations continue to embed and maintain cyber defences as part of business as usual, developing future expertise remains a concern for industry stakeholders.

The Talenza Cyber Wrap draws on workforce mobility data and insights from its networks to provide a yearly perspective on skill and hiring trends. The 2025/26 report offers an evidence-based snapshot for organisations as they plan their cyber security staffing and skills strategies for the coming year.