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International Business Times UK
International Business Times UK
Akshay Puri

AI Layoffs Backfire: Companies That Fired Workers Are Now Paying More to Rehire Them

New research suggests companies using AI effectively are hiring more staff, challenging fears of widespread job losses. (Credit: Pexels)

For almost two years, the corporate message sounded remarkably familiar. A company announced job cuts. Artificial intelligence was presented as the reason. Executives promised greater efficiency. Investors welcomed lower costs. For many businesses, it appeared to be the next stage of workplace transformation. Now, a growing number of companies are changing course.

Employers that reduced headcount while investing heavily in AI are finding that technology cannot replace every aspect of human work. In some cases, businesses are spending more to recruit staff they previously let go, highlighting the limits of AI in roles that rely on judgement, empathy, and experience.

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