California Governor Newsom Issues Executive Order to Study AI-Driven Job Losses

Governor Gavin Newsom signed an executive order directing California state agencies to examine “severance policies, subsidized employment, job-training programs, stock-compensation structures, cooperative ownership models, and union negotiations” as mechanisms to mitigate potential job losses caused by artificial-intelligence systems. The order also requires a comprehensive report on AI’s impact on the state labor market.

CalmattersThe HinduThe Hindu

The order follows a wave of high-profile layoffs in the tech sector. Meta announced the elimination of 8,000 positions, citing AI-driven efficiencies; Cisco and Block similarly referenced AI when cutting thousands of jobs. Earlier in 2023, Newsom enacted AI-protection measures and encouraged state agencies to adopt the technology. Two days before the new order, the California Senate passed the No Robo Bosses Act, which bars employers from using AI decisions as the sole basis for firing or disciplining workers—a bill Newsom vetoed in 2022.

CalmattersThe HinduThe Hindu

• Governor Gavin Newsom – initiator of the executive order.

Calmatters

• California Labor Federation – represented by President Lorena Gonzalez, who welcomed the order but called for immediate action.

Calmatters

• AFL-CIO – President Liz Shuler and affiliated labor leaders have pledged to withdraw support for Newsom’s 2028 presidential bid unless concrete worker protections are enacted.

Calmatters

• Tech Companies – Meta, Cisco, Block, among others, are cited as recent examples of AI-linked workforce reductions.

Calmatters

• Meta: 8,000 jobs eliminated.

Calmatters

• Cisco and Block: “thousands” of jobs cut, each attributing reductions partially to AI adoption.

Calmatters

• No statewide AI-impact statistics are yet available; the order’s mandated report will fill this gap.

Calmatters

The order could shape California’s approach to AI governance, influencing severance standards, subsidized re-employment schemes, and collective-bargaining frameworks. Politically, the move intersects with the governor’s prospective 2028 presidential campaign, as labor groups have signaled conditional support based on AI-related worker protections.

Calmatters

Newsom’s office framed the order as a proactive step to “anticipate and address the disruptive potential of AI on employment,” emphasizing collaboration with agencies, unions, and industry stakeholders. The California Senate highlighted the No Robo Bosses Act as complementary legislation aimed at safeguarding workers from automated decision-making.

Calmatters

Labor leaders argue the order stops short of actionable measures. Lorena Gonzalez said the executive order is “welcome but not enough,” urging immediate policy implementation to prevent “catastrophic job loss.” The AFL-CIO’s pledge to withhold support underscores broader dissatisfaction with past vetoes of AI-related worker protections.

Calmatters

• The precise number of AI-driven layoffs beyond the cited 8,000 at Meta remains unclear.

Calmatters

• No current data quantifies AI’s overall effect on California’s employment landscape, a gap the forthcoming report is intended to address.

Calmatters

> “We are glad that Governor Newsom is acknowledging the potential harm of AI on workers, but it’s not enough to just study the issue, we have to take action now. Catastrophic job loss from AI is not inevitable, it’s a political choice,” — Lorena Gonzalez, President, California Labor Federation

Calmatters

State agencies will convene working groups over the next 90 days to draft the AI-impact report, which the governor will review before recommending legislative or regulatory actions. Labor organizations plan to monitor the report’s findings and may intensify pressure on the administration ahead of the 2028 election cycle.

Calmatters