Newsom orders AI workforce plan as tech cuts top 114,000

California Gov. Gavin Newsom signed an executive order directing state agencies, universities and industry partners to prepare workers, small businesses and communities for job disruption tied to artificial intelligence as the tech sector has cut more than 114,000 positions so far in 2026. The order requires new data collection, policy studies and worker supports to track and respond to AI-related displacements.

The order assembles a coalition of universities, economists, labor experts, state agencies and industry leaders to map where AI is affecting jobs and to draft policy options. The Employment Development Department will build a public dashboard to monitor AI’s impact by sector. The Labor and Workforce Development Agency has 180 days to recommend updates to the California Worker Adjustment and Retraining Notification (WARN) Act. Officials will also create a single online portal for government services and an “AI playbook” to guide job training programs.

The working group will study several policy options, including changes to severance rules, expanded unemployment insurance, transition payments for displaced workers and broader retraining programs. The group will evaluate alternative ownership models such as worker-owned companies and proposals for universal basic capital programs intended to give workers a financial stake in growth tied to AI. The order also calls for more timely hiring and payroll data so state agencies can identify layoff trends sooner.

The order comes amid widespread reductions across technology firms. Companies reporting cuts this week include ClickUp, which reduced about 22% of its staff; Intuit, which announced roughly 3,000 layoffs; and Meta, which cut about 8,000 jobs. Financial firms have also announced workforce changes, with one international bank planning sizeable reductions in corporate-function roles through 2030.

California hosts a large share of private AI companies, including 33 of the world’s top 50, and state officials said that makes California a focal point for potential workforce disruption. The executive order directs the coalition to pilot programs that could be expanded if they show benefit for displaced workers. The working group must report back with recommended policy changes and implementation plans, and the 180-day timeline sets an early deadline for WARN Act proposals.

In a post on X, Newsom wrote the order represents a “first step” and added, “California has never sat back and watched as the future happened to us.” Background materials accompanying the order note that while AI may boost productivity, the gains to date have been uneven, and state partners were asked to prioritize solutions that protect workers during transitions and test approaches to share economic gains.