Newsom Signs Executive Order to Mitigate AI Job Losses

Governor Gavin Newsom signed Executive Order N-6-26 on May 21, 2026, to protect California's workforce and small businesses from economic disruptions caused by artificial intelligence. The order follows a period of significant volatility in the technology sector, where over 52,000 jobs were cut in early 2026. This included Meta, which laid off 8,000 employees—approximately 10% of its workforce—as CEO Mark Zuckerberg transitioned the company toward AI.

The directive mandates the Employment Development Department to launch a public-facing dashboard tracking AI's impact on employment within 90 days. Additionally, the California Labor and Workforce Development Agency must review academic research on labor market impacts and provide recommendations to update the state's Worker Adjustment and Retraining Notification (WARN) Act within 180 days. Newsom proposed moving beyond universal basic income toward a model of "universal basic capital" to give workers a financial stake in companies.

These state-level protections, including the recently passed No Robo Bosses Act, contrast with the federal approach. President Donald Trump postponed a planned executive order on AI safety, citing concerns that regulations could hinder the United States' lead over China. The Trump Administration has since pursued a strategy of deregulation, utilizing an AI Litigation Task Force to challenge state-level AI laws. While labor leaders like Lorena Gonzalez welcomed the acknowledgment of AI's harm, some criticized the executive order as insufficient, arguing that immediate action is required rather than further study.