As more companies boldly announce AI-driven layoffs in 2025, it’s becoming clear that junior and entry-level roles are bearing the brunt. Graduate programs and internships—once foundational stepping stones—are now at risk of fading away as firms rush to replace human labor with artificial intelligence. Amazon, for example, recently cut 14,000 corporate jobs to double down on its “biggest bets,” including generative AI. Other major players like Accenture, Salesforce, Lufthansa, and Duolingo are following a similar path.
This shift is raising serious concerns: if AI can handle the work typically done by new grads and early-career professionals, how will young people ever break into the workforce?
New data paints a troubling picture. In the U.K., a survey by the Chartered Institute of Personnel and Development (CIPD) found that 62% of employers expect AI to eliminate junior, clerical, administrative, and even some managerial roles. Meanwhile, entry-level job postings in the U.S. have dropped by roughly 35% since January 2023, according to labor analytics firm Revelio Labs. In the U.K., competition has become fierce—just under 17,000 graduate roles drew a staggering 1.2 million applications, underscoring how scarce these opportunities have become.
But experts warn that cutting too deeply into entry-level hiring could backfire. Fabian Stephany, an assistant professor studying AI and work at the Oxford Internet Institute, argues that hiring junior talent isn’t just about filling roles—it’s an investment in a company’s future.
Chris Eldridge, CEO for the UK, Ireland, and North America at recruitment firm Robert Walters, puts it bluntly: “If you remove too many junior roles, you starve your internal talent pipeline.” Without a steady flow of new hires, companies risk creating a “talent bottleneck,” forcing them to rely on expensive external hires down the line—leading to salary inflation, higher recruitment costs, and weakened internal culture.
Moreover, young employees aren’t just future leaders—they’re cultural connectors. They bring fresh perspectives, stay attuned to shifting consumer trends, and often understand emerging tech better than seasoned executives. As Stephany notes, companies that stop hiring young people risk becoming out of touch—“like an elderly care home,” he says, lacking the energy and insight needed to innovate.
Matthew Prince, CEO of Cloudflare, echoes this sentiment. “We need the next generation to teach old guys like me how to use AI,” he recently told CNBC. His company plans to welcome 11,000 interns this year—not just to train future talent, but to learn from them.
Young hires also act as “culture carriers,” absorbing and passing down what experts call “tacit knowledge”—the unwritten rules, social dynamics, and institutional wisdom that keep organizations running smoothly. “So much of what makes a company work isn’t in any handbook,” Stephany explains. “It lives in the hallway conversations, the cafeteria chats, the shared experiences.”
Eldridge adds that new employees keep companies honest, pushing them to evolve by asking hard questions and challenging the status quo. “They’re sponges for the best parts of your business,” he says. “Without that influx, you lose not just talent—but vitality.”
In short, while AI might handle tasks, it can’t replace the human spark that fuels long-term innovation, culture, and leadership. Cutting the entry-level pipeline might save money today—but it could cost companies their future.