Newsom orders California response as AI cuts 114,000 tech jobs

On Thursday, Gov. Gavin Newsom signed a first-in-the-nation executive order directing California agencies to prepare workers, small businesses and communities for job losses tied to artificial intelligence. The order follows roughly 114,000 tech-sector job cuts reported so far in 2026.

The order convenes a working group that includes universities, economists, labor specialists, state agencies and industry executives. The panel will draft policy recommendations and monitor where AI is eliminating jobs. The Employment Development Department has been tasked with building a public dashboard to track AI’s impact by sector. The Labor and Workforce Development Agency has 180 days to recommend updates to the state’s Worker Adjustment and Retraining Notification (WARN) Act. The administration is also directed to produce an AI playbook for job training and to launch a single online portal for state services.

Policy options the group will study include new severance rules, expanded unemployment insurance and transition payments for workers displaced by automation. Longer-term ideas under review include worker-owned business models, universal basic capital programs and expanded retraining programs. The order requests improved hiring and payroll data so state analysts can identify layoff trends more quickly and target assistance.

State and industry data show roughly 114,000 job cuts at about 150 technology companies in 2026, with reductions across Silicon Valley and beyond. Recent company actions include a reduction at ClickUp of about 22% of staff, an announcement from Intuit cutting about 3,000 positions and a reduction at Meta of roughly 8,000 jobs. A bank has announced plans to reduce some corporate functions by more than 15% by 2030.

California hosts a large share of private AI developers, including 33 of the world’s top 50 private AI companies, which increases the state’s exposure to workforce disruption. Lawmakers and labor groups sought state-level planning to coordinate public programs with employment changes in the tech sector.

The order directs agencies to review notification timelines and employer reporting under WARN to give workers and communities more lead time for mass layoffs. It calls for a review of workforce programs to better align public training funds with emerging job opportunities in AI and other growing fields. The dashboard and improved data are intended to help direct funding and services more quickly and to identify regions that need additional support. The working group must deliver initial findings and policy options within the timeframes set by the order.

In a statement, Newsom wrote, “I just signed a first-of-its-kind executive order to empower workers impacted by AI. California will pursue policies that make sure working Californians — not just Big Tech — benefit from the wealth and breakthroughs coming out of this space.”