“If the new hires aren’t there [to begin with], your talent pipeline is empty.”
— Liz Eversoll, CEO of Career Highways

A new article from Reworked explores the growing trend of companies reducing entry-level hiring in favor of AI-driven efficiency—and the costly long-term consequences of that decision.

While AI can handle many of the routine tasks traditionally assigned to junior employees, organizations that eliminate entry-level roles risk dismantling their internal talent pipelines. These early-career positions are critical for developing future leaders who understand company culture, workflows and decision-making processes. Without them, companies are forced to rely on external hires—who are more expensive, take longer to ramp up and are more likely to fail.

The article highlights real-world examples, including leadership struggles at major companies like Coca-Cola and Starbucks, to illustrate how weak succession pipelines can negatively impact performance and stability. It also emphasizes that entry-level roles should not disappear, but evolve—integrating AI while focusing human effort on critical thinking, oversight and innovation.

Forward-thinking organizations like IBM and Dropbox are already adapting by redesigning entry-level roles and investing more heavily in early-career talent. Experts warn that companies prioritizing short-term cost savings today may face significant leadership gaps in the future.

Read the full article here: