A wave of artificial intelligence-driven layoffs sweeping through California’s tech sector has finally pushed Governor Gavin Newsom to act. His new executive order, signed Thursday, confronts a reality where AI could erase up to half of entry-level white-collar jobs within five years, according to earlier warnings from Anthropic CEO Dario Amodei.
California sits at ground zero for this transformation. The state hosts 33 of the world’s top 50 private AI companies, creating a brutal paradox: the firms building tomorrow’s technology are dismantling today’s workforce. Amodei has since softened his stance, now arguing AI will reshape daily tasks and boost productivity rather than eliminate workers wholesale.
Those shifting predictions offer little comfort to the thousands already receiving pink slips. Meta just laid off 8,000 employees globally, roughly 10% of its headcount, as Mark Zuckerberg redirects resources toward AI expansion. LinkedIn plans to slash more than 600 California positions this summer, primarily clustered in the Bay Area. Salesforce and Oracle have also shed hundreds of workers in a downtrend that has accelerated over the past two years.
Newsom voiced frustration Tuesday at a conference, pointing out that tech companies enjoy generous tax breaks while shedding jobs faster than government can respond. His order, however, stops short of immediate action. Instead, it directs state agencies to study the problem: the Employment Development Department must create a public dashboard tracking AI’s workforce impact, while other departments receive three to six months to deliver analyses. The order also proposes eventually building AI-specific labor frameworks and job-training programs for the most vulnerable workers.
Labor leaders responded with measured skepticism. California Federation of Labor Unions president Lorena Gonzalez told CalMatters the order marks a beginning but falls short. “It’s not enough to just study the issue, we have to take action now,” she said.
Newsom’s move represents the first gubernatorial response to AI-fueled job displacement in America. Meanwhile, other nations experiment with bolder remedies. The United Kingdom, Japan, and South Korea have explored universal basic income proposals. Chinese workers have even begun suing employers after AI replaced them.
The timing proved notable for another reason. President Donald Trump postponed his own AI executive order that same Thursday, citing objections to certain provisions and a desire not to obstruct the industry’s competitive sprint against China.
