Entry-level job cuts might boost your profit margins now-but they will gut your future

"There is a troubling trend spreading across some of today's most recognizable tech companies. Spotify, Shopify, Dropbox, and others are cutting training programs and significantly reducing entry-level hiring. At first glance, the decision might seem sensible: reduce costs, restructure teams, and prepare for a future driven by AI. In reality, it is a short-term move that will cause long-term damage."

"The numbers tell the story. The unemployment rate for recent college graduates has climbed to 5.8%, higher than the national average and the worst in a decade outside the pandemic. More than 40% of graduates are underemployed, working in roles that do not require a college degree. Entry-level postings in the United States have fallen by more than 40% since mid-2022. Even graduates in traditionally "safe" majors such as computer science or engineering are struggling to find jobs that match their training."

"AI is advancing rapidly, but despite the hype, it cannot replace human intuition, creativity, and judgment. These are the qualities that truly differentiate companies. What we need now are people who can work alongside AI: analysts who know how to use machine learning to make smarter decisions, design better products, and deliver more personalized customer experiences. That kind of talent is not built overnight. It is developed through years of deliberate investment."

Major tech firms are cutting training programs and reducing entry-level hiring, producing short-term savings but long-term harm to talent pipelines. Recent-college-graduate unemployment has risen to 5.8%, with over 40% of graduates underemployed and entry-level job postings down more than 40% since mid-2022. Even computer science and engineering graduates struggle to find roles matching their training. Young professionals seek learning, mentorship, and growth opportunities that build capability. AI cannot replace human intuition, creativity, and judgment. Building a Human Digital Resources model—humans and AI working side by side—requires deliberate, sustained investment in workforce development.

Read at Fast Company