Companies are restructuring operations around automation tools and AI agents capable of performing routine tasks.
A report from RationalFX shows that 45,363 technology jobs have been cut worldwide since January 2026.
Around one fifth of those layoffs are linked directly to artificial intelligence adoption and organisational restructuring tied to automation.
Tech layoffs tied to AI automation
Some of the largest job cuts have occurred at companies openly linking layoffs to artificial intelligence systems.
Block announced the biggest reduction, eliminating 4,000 jobs. Chief executive Jack Dorsey said the move was not financially driven.
The company is replacing several functions previously carried out by employees with automated AI tools.
The layoffs will reduce Block’s workforce from about 10,000 employees to roughly 6,000.
Other technology companies have also trimmed staff as automation becomes more widely deployed. WiseTech Global cut 2,000 roles.
Meanwhile, eBay eliminated 800 jobs, and Pinterest reduced its workforce by 15%.
These reductions reflect how companies are reorganising work as AI agents handle more operational and analytical tasks.
Entry-level jobs face growing pressure
Industry executives warn that younger workers could face the biggest disruption as AI systems absorb routine entry-level responsibilities.
According to an expert, automation is rapidly reshaping hiring patterns across technology companies.
Unemployment among new college graduates could climb into the mid-30% range within the next few years as AI agents replace work traditionally assigned to junior employees.
Recent labour market data suggests early warning signs are already visible.
The Federal Reserve Bank of New York reported unemployment among recent graduates reached about 5.7% at the end of 2025.
The underemployment rate stood at 42.5%, the highest level since 2020.
AI skills becoming a critical advantage
While automation is eliminating certain roles, industry leaders say the technology is also changing how employees compete in the job market.
An expert states that every profession will feel the effects of artificial intelligence almost immediately.
Workers will not lose jobs directly to AI systems but to people who use AI tools more effectively.
Investor Naval Ravikant said on X that the real divide in the workforce will emerge between people who can work with AI systems and those who cannot.
According to an analysis by PwC, workers with artificial intelligence skills can earn as much as 56% more than peers who lack those capabilities.
Governments and companies push reskilling
Technology leaders are also calling for broader efforts to prepare workers for changes triggered by artificial intelligence.
Another expert states that workforce preparation cannot fall solely on individuals.
They argued that governments, educational institutions, and private companies must collaborate to develop large scale reskilling programmes.
Despite the disruption, projections suggest artificial intelligence will also generate new opportunities.
The World Economic Forum estimates AI could create around 170 million new roles globally by 2030.
However, those roles are expected to favour workers who adapt quickly to the technology.
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