AI and Jobs: Layoffs, New Roles and Entry-Level Data — 2026-10-28
Goldman Sachs projects AI could displace 9% of the workforce, while tech layoffs in 2026 have surpassed 134,000, with Microsoft offering buyouts to 60,000 workers. In South Korea, a Bank of Korea report highlights how AI adoption is degrading youth employment quality, pushing graduates into temporary roles despite semiconductor sector growth. Meanwhile, compensation for specialized AI roles like Forward Deployed Engineers remains high, contrasting with the shrinking entry-level market.
AI and Jobs: Layoffs, New Roles and Entry-Level Data — 2026-10-28
Top developments
Goldman Sachs Warns of Delayed AI Displacement
Goldman Sachs analyst Joseph Briggs updated his projection that AI could displace approximately 9% of the U.S. workforce, equivalent to one in 11 workers. However, the report notes that companies have historically delayed automation-driven layoffs until economic downturns, suggesting the full impact may not be immediately visible in current labor data.
Tech Layoffs Surpass 134,000 in 2026
Tech companies have laid off over 134,000 employees in 2026, surpassing the total for the previous year. The rate of job loss averages 459 positions per day, with major firms like Microsoft, Barclays, and American Express cutting workforces to fund AI infrastructure.
Microsoft Targets 60,000 for Voluntary Buyouts
Microsoft is offering voluntary buyouts to 60,000 workers as it pivots aggressively toward AI spending. This move is part of a broader trend where tech giants are restructuring to prioritize AI productivity gains, raising concerns about whether these efficiency measures will lead to further involuntary job cuts.
Local view
South Korea: AI Degrades Youth Employment Quality
A new report from the Bank of Korea (BOK) reveals that while overall unemployment rates for youth have decreased, the quality of employment has worsened. The spread of generative AI has led companies to prefer experienced hires, reducing entry-level roles and forcing young workers into temporary and daily-wage positions.
Semiconductor Boom Fails to Translate to Quality Jobs
Despite a boom in the semiconductor sector, the BOK notes that economic growth has not translated into high-quality jobs for young people. The concentration of growth in IT manufacturing, combined with AI's replacement of basic tasks, has created a paradox where growth coexists with rising labor market barriers for graduates.
Context & numbers
Compensation for Specialized AI Roles
While entry-level jobs shrink, compensation for specialized AI roles remains robust. The average salary for an AI Engineer is $146,975, with top earners reaching $226,235. Forward Deployed Engineers (FDEs) command even higher premiums, with total compensation ranging from $215,000 at Palantir to over $1.2 million for principal-level engineers at companies like Anthropic.
Layoff Attribution Skepticism
Although employers cited AI as a reason for 112,713 job cuts, labor data analysts remain skeptical. Challenger, Gray & Christmas and Lightcast suggest that "AI" is often used as a cover story for broader restructuring, and actual displacement data is harder to isolate from general economic headwinds.
On the radar
- 2027 Layoff Acceleration: Analysts predict layoffs may accelerate in 2027, driven by capital expenditure strains and weaker hiring trends rather than pure AI displacement.
- Contractor Bridging: As firms lay off staff, some are opting to bridge gaps with contractors rather than rehiring, altering long-term workforce stability.
- Executive Restructuring Warning: Forbes reports warning signs that some executives are using "AI restructuring" as a legal shield for layoffs that may not be strictly technology-driven.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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