AI layoffs to backfire: Half quietly rehired at lower pay
Briefly

AI layoffs to backfire: Half quietly rehired at lower pay
"Many organizations rushing to cut staff in the name of AI efficiency are expected to quietly rehire those roles - often "offshore or at lower salary." According to Forrester's "Predictions 2026: The Future Of Work" analysis, half of AI-attributed layoffs are likely to be reversed. "Many companies claim to be cutting jobs due to AI. Some of these efforts yield spectacular failures... Other times, AI isn't actually replacing human workers at all. Too often, the C-suite lays workers off for the future promise of AI,""
"Forrester's analysis found that using AI for financially driven layoffs can backfire: 55 percent of employers regret laying off workers because of AI. More people in charge of AI investment expect it to increase headcount (57 percent) than to decrease it (15 percent) over the next year. "We predict that much of this work will be given to lower-wage human workers, offshore or at lower salary," the report adds."
"Staffing in the HR function could be cut by half, even as it's expected to deliver the same level of service with the help of AI-driven talent and workforce planning systems. "Many will turn to vendors' AI-washed product offerings to give them at least the appearance of AI readiness, with only a few armed with the [ability] to discern legit tech from vaporware.""
Many organizations rushing to cut staff in the name of AI efficiency are expected to quietly rehire those roles, often offshore or at lower salary. Half of AI-attributed layoffs are likely to be reversed. Using AI for financially driven layoffs can backfire: 55 percent of employers regret laying off workers because of AI. More people in charge of AI investment expect it to increase headcount (57 percent) than to decrease it (15 percent). Much displaced work will move to lower-wage or offshore human workers. HR staffing could be cut by half while relying on AI-driven systems and AI-washed vendor offerings. Agentic AI projects and LLM-based CRM agents face cost, value, risk, and performance challenges.
#ai-layoffs #offshoring #hr-automation #llm-performance
Read at Theregister
Unable to calculate read time
[
|
]