AI is driving more job cuts and weighing on hiring, economists say
AI-related layoffs are increasing, with companies like Intuit and Meta announcing significant job cuts as they shift focus towards automation. However, the broader impact of AI may be seen more in reduced hiring, particularly for junior roles, rather than mass layoffs. Economists suggest that while layoffs are notable, the more significant effect of AI could be a slowdown in job creation, especially for entry-level positions.
- ▪Nearly 50,000 job cuts this year are linked to AI, accounting for 17% of total job cuts in 2026.
- ▪AI has reduced monthly payroll growth by approximately 16,000 jobs over the past year.
- ▪Experts warn that the impact of AI may be felt more through weaker hiring rather than increased layoffs.
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MoneyWatch AI job cuts are rising, but experts say layoffs are only part of the story .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Megan Cerullo Megan Cerullo Reporter, MoneyWatch Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting. Read Full Bio Megan Cerullo Updated on: May 22, 2026 / 5:42 PM EDT / CBS News Add CBS News on Google AI-related layoff announcements are mounting, fueling the sense that the technology is already replacing a significant number of U.S. workers as companies invest heavily in automation.
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