AI is driving more job cuts and weighing on hiring, economists say

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. But AI's broader impact on workers may be quieter: weaker hiring, especially for junior and entry-level roles.Enterprise software maker Intuit this week cut 17% of its staff, or 3,000 people, saying it would shift its focus to AI, while Meta began laying off 8,000 workers on Wednesday as it shifts investment toward AI. Last week, Cisco also announced thousands of job cuts, with CEO Chuck Robbins saying in a blog post that it was reducing headcount in part to invest in "employees' use of AI across the company." Andrew Tran, 40, a Meta product designer who was among those losing their job this week, told CBS News he plans to look for a new job at a company that he believes is using AI "intentionally," rather than chiefly to replace workers. Tran doesn't believe his role at Meta was directly replaced by AI, but said it's clear corporations are leaning into the tech. "In general, companies should have an obligation to retrain their workforces instead of throwing them to the curb," he told CBS News, while clarifying that his views are aimed at the corporate sector as a whole and not specifically at Meta.Meta didn't immediately reply to a request for comment.Thousands of job cutsCompanies have announced nearly 50,000 job cu...