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Fortune
Fortune
Beatrice Nolan

AI-driven layoffs are on the rise as the job market shrinks for recent grads

Federal workers carrying boxes after being laid off. (Credit: Anna Moneymaker—Getty Images)
  • AI is becoming a major driver of workforce reductions, with over 10,000 job cuts in the U.S. in 2025 directly linked to automation, according to new data. Entry-level roles are being hit hardest, as companies look to automate tasks traditionally handled by junior staff. At the same time, the broader job market is slowing, with rising unemployment among recent graduates and young tech workers.

No more new hires if AI can do the job.

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