Goldman Sachs Report: AI Is Killing White-Collar Job Growth as Tech Layoffs Surge and Entry-Level Workers Bear the Brunt
Summary
A Goldman Sachs report reveals AI is crushing white-collar job growth in tech and communication sectors since 2022, with entry-level workers hit hardest as nearly 160,000 tech layoffs surge in 2026 — nearly half tied to AI restructuring — while experts warn companies risk long-term backlash by using AI as a convenient scapegoat for workforce cuts.
Key Points
- A new Goldman Sachs report reveals AI is slowing job growth in information and communication sectors globally, with white-collar roles like call centers, software publishing, and management consulting falling far below historical hiring trends since 2022.
- Entry-level workers are bearing the brunt of AI-driven job displacement, while AI adoption rates surge between 15% and 20% in developed markets, though broader labor market signals remain mixed with some AI-investing companies actually growing headcount.
- Despite nearly 160,000 tech layoffs in 2026 — 82% in the US and nearly half tied to AI restructuring — companies risk long-term backlash by using AI as a scapegoat for workforce cuts, threatening internal AI adoption and failing to deliver lasting returns for stakeholders.