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.

That’s what Shopify CEO Tobi Lütke told staff in a memo earlier this year. And he’s not alone.

Over at consulting giant McKinsey , thousands of AI agents have been deployed throughout the company, often picking up tasks previously handled by junior workers. At “AI-first” Duolingo, CEO Luis von Ahn is using “AI fluency” to determine who is hired and promo

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