50% of Firms Plan AI Rehiring by 2027 as 90% Rethink Job Cuts
Updated
Updated · ZDNet · Aug 20
50% of Firms Plan AI Rehiring by 2027 as 90% Rethink Job Cuts
3 articles · Updated · ZDNet · Aug 20
Summary
Gartner estimates 50% of companies that cut headcount because of AI will rehire people for similar roles by 2027, signaling growing regret over automation-led layoffs.
Careerminds found three-quarters of organizations said AI layoffs cost more than they saved, while as many as 9 in 10 would reconsider those cuts if given another chance.
The rethink comes after 126,000 U.S. employees lost jobs to AI-related factors from January 2025 through June 2026, according to jobloss.ai, even as executives were sold on productivity and cost savings.
Business leaders interviewed by ZDNET said stronger results come from redesigning work, speeding processes and upskilling staff, rather than treating AI mainly as a headcount-reduction tool.
The broader lesson is that companies using AI for growth, quality and new revenue may gain more than those using it chiefly to shrink payrolls.