Automation fueled by artificial intelligence has become a significant cause of workforce reductions in the United States in 2025, with over 10,000 job cuts directly attributed to AI. Entry-level roles are disproportionately affected as companies deploy AI to automate knowledge-intensive junior tasks. Layoffs are rising broadly, with technology sectors experiencing major impacts. Companies increasingly prioritize AI fluency in hiring and promotion decisions. The shift is complicating the job market for recent graduates, who are struggling amid a slowing hiring environment and increased competition, exacerbated by ‘ghost job’ listings and AI replacing traditional entry-level work.