1. United States
  2. Calif.
  3. Letter

Urge California to Lead on AI-Driven Job Displacement Protections

To: Asm. Harabedian, Sen. Pérez, Gov. Newsom

From: A constituent in Pasadena, CA

February 27

California must act now to protect workers from AI-driven job displacement before the crisis predicted by experts becomes reality. Block's announcement this week that it would eliminate approximately 4,000 jobs, nearly 40% of its workforce, with CEO Jack Dorsey explicitly citing AI efficiency as a factor, demonstrates that this threat is immediate, not theoretical. The market's enthusiastic response, with Block's stock surging 18% on Friday, reveals a dangerous disconnect between investor interests and the economic security of working Californians. The Citrini Research report titled 'The Global Intelligence Crisis' warns that AI-driven automation could trigger a white-collar recession with unemployment potentially rising above 10%. The report predicts the first wave of layoffs due to human obsolescence could begin in early 2026, particularly affecting the software sector where California employs hundreds of thousands of workers. Alap Shah, co-author of the report, called Block's layoffs a textbook example of how companies can accelerate output while drastically lowering coordination costs through AI. This creates an overarching economic conundrum. While reduced headcount causes individual stocks to rally, widespread joblessness will ultimately harm corporate performance and markets. More importantly, it will devastate California families and communities. We cannot wait for the federal government to address this crisis. I urge you to champion comprehensive legislation that explores multiple solutions to protect California workers. This should include universal basic income pilots, restrictions on mass AI-driven layoffs without adequate notice, mandatory severance packages tied to company size and profitability, and robust retraining programs funded by corporations benefiting from AI efficiency gains. California has always led the nation on worker protections and technological innovation. We must lead again by ensuring that AI's benefits are shared broadly rather than concentrated among investors while workers bear all the risk.

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