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Posted on 02/11/2026 11:46:08 AM PST by fireman15
A New Report Says AI Layoffs Are Backfiring and Half of Companies Will Start Rehiring, Organizations are starting to come to terms with the limits of AI.
Businesses and workers are actively adopting artificial intelligence tools to automate various workplace tasks and boost their productivity in the process, surveys indicate. Still, managers should probably think twice about using the tech to replace employees anytime soon. Many companies that have swapped people for chatbots will be reversing course and hiring cut staffers back before long, according to top consultancy Gartner.
Recent studies have captured the significantly increased pace with which workplaces are adopting AI to automate redundant job tasks. For example, a McKinsey poll found 62 percent of businesses are at the very least testing the tech, while others are going much faster with fuller deployment. According to a November Gallup survey, 26 percent of employees said they used AI apps a few times per week or more in 2025, and 10 percent reported relying on them daily.
Yet, despite the continued penetration and use of those automating tools—and countless reports that they threaten to push employees out of their jobs—Gartner says the reality of AI’s effects on the workplace are far less dramatic than often billed. That disconnect starts with employment.
After sounding out a selection of its business customers, Gartner experts predicted 50 percent of responding companies “that attributed headcount reduction to AI will rehire staff to perform similar functions” by 2027. Although Gartner said those firms are likely to bring cut staffers back “under different job titles,” the anticipated backtracking won’t be fooling anyone.
(Excerpt) Read more at inc.com ...
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Yeah but they won’t be hiring the same deadbeat Gen-Z-ers.
There are stupid people in high places. It became obvious to me years ago that corporations chose management personnel based solely upon football talk or days at the golf course.
This is a silly story. If any company claimed to be conducting “AI layoffs”, they were using AI as a smokescreen to lay off employees for other reasons. AI is not remotely near the level of sophistication that would allow companies to replace humans with AI on a mass scale. Most business news stories suggest that companies are getting rid of deadweight and Woke disaster hires and calling it AI layoffs. Especially in the entertainment industry.
AI the New DEI ,LOL
It's going to take decades and massive amounts of capitol investment to fully implement AI into mission critical, fault intolerant systems.
Yes.
AI definitely can improve productivity in some type of work, but typically not nearly as much as has been forecast. Anyone, including myself who have been using AI to help with commands, scripts, and coding, especially for tasks repetitive tasks such as setting up a server to host multiple websites... can tell you that often it would have been better to just do it all the “manual way”. The problem is that AI typically makes so many mistakes that it often takes longer to figure out what is going wrong than it would have taken to just set up everything by hand.
Oh yeah, the good ol’ boy network is alive and well. And almost (but not quite) as bad as DEI for putting unqualified people into high-ranking positions.
This is nothing new to programmers. AI is not the first new tech to disrupt the job market. In the end many programmers will learn how to work AI (beyond more than just asking ChatGPT to help write code). Most companies will demand more use of Information, much like relational databases led to more expectations from managers on reporting. Thus programmers will be inas much or more demand as before AI. Programmers who refuse to learn AI may be out of work. But most programmers who’ve been in the industry for decades have learned to adapt to new tech anyway. It’s what we signed up for when we chose the career.
At this point AI can do particular narrow, high-volume, and repetitive tasks but not replace entire complex jobs on a mass scale.
ChatGPT has proven to be a decent alternative to SED and AWK. ;-D
There’s no such thing as AI as it’s being promoted. Being “AI Systems ready” is the new “Being Y2K ready”.
They shed the Covid hires for the PPP money. They can hire back at lower wages. business cycle, again.
You may consider it silly, but it has been a reality for a lot of people already. As I said my neighbors who were laid off are both extremely competent and skilled and found better jobs almost immediately. What is silly are the managers of these companies who fell for the AI hype and got rid of skilled and experienced employees who actually could do the job and tried to replace them with new hires who supposedly could use AI to do what the experienced employees were doing. At this point companies are running into difficulties when managers believe that skill and experience can be replaced with people with less qualifications using AI apps.
Microsoft went all-in on AI. Their stock has tanked. Still waiting for NVidia to crater although it is about $20 below its 12 month high which is better than MSFT’s $150 a share drop.
AI is artificial but not intelligent.
.
.
… in India.
I think that's absolutely true.
Why do you think there are "consultancy firms," like Booze-Allen, Accenture, McKinsey, etc.?
It's because most CEOs don't know what they're doing, don't know where they're going, have no vision for the future, don't understand the industry their company is operating in, and so on.
So many of them are just hoping their boards of directors, their shareholders, the family that owns them, doesn't figure out how clueless they are.
Those consultant firms exist to give the CEOs something plausible to say the next time they have to talk to the company owners.
The “real” job cuts are still a few years out.
I DO know that my wife’s healthcare company installed a new medical records and billing system. They are laying off 10% of their billing staff because it has proven to be more accurate, better interfacing with insurance companies, and bills arrive on time.
My family has had a myriad of pretty significant medical issues over the past five years. I used to tell my wife’s boss that I had never received an accurate bill from their company. Ever. The time spent straightening the bills out would qualify as a part time job.
We are entering another round of serious medical treatment. During the preliminary stages we were on the new system. The bills have been perfect. I am not spending hours with their staff to correct stuff. Evidently, that is true across thousands of patients.
I have been around billing and telephone systems since I was 19 years old. The increased efficiency over the past few years has been stunning. And it’s only going to increase.
No…the real cuts haven’t even really started yet. Wait until Elon’s robots show up.
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