Is AI to blame for job cuts, especially in the entry level? Experts say it is more of a scapegoat
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- Layoffs.FYI reports about 300 job cuts by five Canadian tech firms—Shopify, Loopio, OpenText, SSense and Dayforce—in 2026, on top of 2,276 dismissals at 11 firms last year.
- Coinbase, Amazon, Meta, Oracle among 50 U.S. tech employers have eliminated nearly 90,000 jobs since the start of the year, citing AI as the primary motivator.
- Harris Poll survey for Express Employment Professionals finds 45% of Canadian hiring managers believe AI is more efficient for entry‑level tasks than hiring new candidates.
- Roger Lee, founder of Layoffs.FYI, says there is little evidence AI can replace laid‑off employees’ jobs and that firms use AI as a cost‑cutting justification.
- Gartner study shows 80% of businesses piloting autonomous capabilities have reduced staff, yet only 1% of 2025 public layoffs are linked to AI-driven productivity gains.
Why it matters: Tech firms save on payroll by blaming AI, but workers—especially entry‑level talent—face higher unemployment, and the narrative masks underlying macro‑economic pressures.
