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 traditiona