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International Business Times UK
International Business Times UK
Technology
Stephanie Cruz

55% of Companies That Slashed Jobs for AI Now Regret It After Restaffing Costs Soar

The AI boomerang: Cost-cutting layoffs are reversing, with 55% rehiring within six months, showing AI's limits. (Credit: AI-generated illustration: Google Gemini)

The corporate rush to swap staff for artificial intelligence is quietly going into reverse, and the retreat is proving expensive.

More than half of the employers who cut jobs on the promise of AI now regret it. Forrester's Predictions 2026 report put the figure at 55%, matched almost exactly by the workforce analytics firm Orgvue. The explanation is consistent across the research: the technology absorbed the routine work but stumbled on the judgement, nuance, and institutional knowledge that made those roles worth paying for.

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