Automation and AI adoption are driving workforce reductions in the U.S., especially impacting entry-level positions traditionally held by recent university graduates. Data from Challenger, Gray & Christmas highlights over 10,000 AI-related job cuts in the first seven months of 2025. Companies like Shopify and McKinsey have deployed AI systems extensively, reducing the need for junior staff. The tech sector faces significant layoffs, with AI cited as a top cause in workforce reductions. Experts note that early-career roles in data collection and basic analysis are most vulnerable to automation-driven cuts, pressing new graduates to adapt to an evolving labor market.