It really depends on your domain. If you're into low level hacking and distributed systems, there is a lot more algorithmic work. There is demand for software that's cheap to scale and/or low latency. Some fields are bottlenecked by hardware (machine learning, realtime rendering, etc.) and so benefit from better software. Some production systems still need a large amount of optimization to satisfy economic and product constraints.

I don't think the number of jobs requiring fairly deep systems or algorithmic knowledge has gone down, but the ratio has.