AI-Driven Layoffs Hit US Workforce, Entry-Level Jobs Plummet in 2026

U.S. employers cited artificial intelligence as the leading cause of more than 100,000 job cuts in the first half of 2026, representing 23% of all layoffs nationwide. In May alone, AI accounted for 38,579 announced cuts – 40% of that month’s total – and the cumulative AI‑related cuts for the year already exceed the total recorded for all of 2025.

The surge has hit the tech sector hardest, with firms such as Oracle, Google and Meta trimming tens of thousands of positions while expanding AI initiatives. A Gallup survey found that workers who do not use AI are significantly more likely to be laid off, especially in technology fields where infrequent AI users are three times more vulnerable.

Separately, a World Economic Forum and PwC report warned that AI is eroding entry‑level roles. Employment for U.S. workers aged 22‑25 in jobs highly exposed to AI has fallen 16% since late 2022, and globally 37% of young workers face medium or high AI exposure. The report stresses that losing junior positions threatens the talent pipeline needed for future managers and specialists.