Overview
- ServiceNow chief Bill McDermott told CNBC unemployment for new college graduates could reach the mid-30% range within a couple of years as AI agents take over routine work, noting his firm has automated 90% of customer service use cases previously handled by people.
- Global tech layoffs reached 45,363 so far in 2026, with roughly 9,238 tied to AI and restructuring, led by Block’s 4,000 cuts, WiseTech Global’s 2,000, Livspace’s 1,000, eBay’s 800 and Pinterest’s 675, according to RationalFX data.
- Atlassian said it will shed about 1,600 jobs, or roughly 10% of its workforce, to support AI investments, with India accounting for 16% of affected roles.
- Industry reporting shows the heaviest losses in repetitive cognitive and entry-level roles such as manual testing, technical support, basic coding and data entry as companies shift spending to AI infrastructure and data centres.
- The job market is polarising: a 2025 PwC analysis found AI-skilled employees earned a 56% pay premium, while Randstad’s Workmonitor survey reported widespread worker anxiety and accounts of employees fixing low-quality AI outputs.