After AI Layoffs, Newsom Orders State Government to Find Ways to Ease the Pain
California Governor Gavin Newsom signed an executive order directing state agencies to study AI-driven job losses and propose solutions like severance policies, job training, and union negotiations support. The move follows Meta’s 8,000-worker layoffs, cited as AI-related, and comes after California’s Senate passed the No Robo Bosses Act, restricting AI-only firing decisions, while unions had threatened to withdraw support for Newsom’s 2028 presidential bid over past AI regulation stances.
California Governor Gavin Newsom issued an executive order on May 21, 2026, instructing state agencies to assess the impact of artificial intelligence on the California labor market and develop strategies to ease job losses. The directive includes exploring severance policies, subsidized employment, job training programs, and reviewing how unions negotiate AI-related workplace changes. The order follows Meta’s announcement of 8,000 layoffs, with CEO Mark Zuckerberg citing AI as a key factor. It also comes two days after the California Senate passed the No Robo Bosses Act, which prohibits businesses from using AI-driven decisions as the sole reason for firing or disciplining workers. Newsom previously vetoed a similar bill last fall. The latest executive order builds on earlier actions in April 2026 and 2023, where Newsom balanced AI protections with encouraging state agencies to adopt the technology. The move aligns with pressure from labor groups, including AFL-CIO President Liz Shuler, who had threatened to withdraw support for Newsom’s potential 2028 presidential campaign if he did not take stronger steps to protect workers from AI. The order requires a report on AI’s labor market effects and potential solutions, including stock compensation and cooperative business ownership for displaced workers. It reflects growing concerns about AI’s role in workforce disruptions amid Newsom’s political ambitions and California’s push for worker protections.
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