CEOs Cut Junior Roles as AI Automates Entry-Level Work

A series of global reports indicate a sharp decline in entry-level employment as executives leverage artificial intelligence to automate routine tasks. Oliver Wyman found that the share of CEOs planning to reduce junior roles over the next two years jumped from 17% in 2025 to 43% in 2026. This shift is driven by AI agents' ability to handle coding, data processing, and document drafting—tasks that previously defined graduate roles. Consequently, 30% of CEOs are shifting their hiring focus toward mid- and senior-level employees who possess the critical thinking and judgment AI currently lacks.

The impact is evident across several markets. In the United States, entry-level jobs fell by approximately 35% over 18 months, with recent graduate unemployment reaching 5.6% in December. In the United Kingdom, Morgan Stanley reported an 8% workforce reduction in companies adopting AI, while Irish employers have similarly cut entry roles due to AI and rising labor costs. A Mercer survey further reveals that 99% of C-suite executives expect AI to trigger layoffs within two years, with companies like Meta, Amazon, and Pinterest citing technology as a driver for recent cuts.

Some executives warn that this trend creates a future talent gap by eliminating the pipeline for experienced managers. International Business Machines Corp. remains a notable outlier, announcing plans in February to triple entry-level hiring in the United States to secure its future talent pipeline. Despite the widespread adoption, only 27% of executives report that their AI investments have met or exceeded ROI expectations.