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A New Report Says AI Layoffs Are Backfiring and Half of Companies Will Start Rehiring
Inc. ^ | February 4, 2026 | BRUCE CRUMLEY

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 ...


TOPICS: Business/Economy; Computers/Internet; Education; Hobbies
KEYWORDS: ai; aitruth; computers; employment; labor; layoffs; serverfarms
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To: fireman15

I have met no one who liked working at amazon.

many of quit and came back, or went elsewhere.

but then again I only know AWS people


21 posted on 02/11/2026 12:22:15 PM PST by algore
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To: Tell It Right

I use ChatGPT and Grok a few times a week. I am not exactly a heavy user.

But when I do, I find myself thinking back to my dBase II programming days: You have to know how to ask the right questions to get the right answers.

I would imagine the best course a high school kid could take these days would be a “logic” class.


22 posted on 02/11/2026 12:23:35 PM PST by Vermont Lt
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To: Vermont Lt

The new programming language is “English”.


23 posted on 02/11/2026 12:24:49 PM PST by dfwgator ("I am Charlie Kirk!")
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To: PAR35

“Microsoft went all-in on AI. Their stock has tanked. “

A five-year double.


24 posted on 02/11/2026 12:26:04 PM PST by TexasGator (1/.)
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To: Steely Tom

I have several friends who retired as O6 in the Army and Air Force…and went to work for those consultancy companies.

One of them told me that they needed him to deal as a liaison between the “teams” of MBAs and the manufacturers, service providers, and the military managers. When they hired him they said that these “genius” kids could not communicate with the Gen X managers at this multi-billion dollar companies. He was there to keep everyone “happy.”

Now I did a lot of process review in my days. I would have looked at that structure and cut that job in a heartbeat. But, we never worked on government contracts. LOL


25 posted on 02/11/2026 12:28:43 PM PST by Vermont Lt
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To: dfwgator

Gee….I should have kept working. I would be in high demand now! I know good English.


26 posted on 02/11/2026 12:29:42 PM PST by Vermont Lt
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To: Vermont Lt
But when I do, I find myself thinking back to my dBase II programming days: You have to know how to ask the right questions to get the right answers.

Agreed. And dBase is a good analogy. Back then with xBase databases (dBase, Clipper, and FoxPro are the ones I can think of), you had to write a small program to get simple sums or averages. Then later with relational SQL databases you can do that with one command. Once managers realized that, they could either generate a report themselves or ask programmers to do it with the expectation that it would be done quickly. This led to much more information being expected for management decisions, which led to more programmers needed than before even though it was easier to make each report.

I expect AI to be no different.

27 posted on 02/11/2026 12:29:55 PM PST by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: spokeshave
AI is artificial but not intelligent.

Sounds like my ex-wife. LOL

28 posted on 02/11/2026 12:30:59 PM PST by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: fireman15

And let’s face it, if the task is repetitive we probably already created scripts to do it.


29 posted on 02/11/2026 12:31:17 PM PST by pas
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To: GingisK

Also nice hair, and glib meeting presentations that make senior managers feel warm and fuzzy.


30 posted on 02/11/2026 12:33:58 PM PST by Campion (Everything is a grace, everything is the direct effect of our Father's love - Little Flower)
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To: spokeshave

All an LLM does is predict the next token based on input tokens.

Most times in response to a user request, the Agent forwards the request to the LLM, then the LLM goes to the Agent and says “I don’t have that information, I need you to get it for me”, and the Agent basically does a web search and sends the information back to the LLM. You can engineer it, to direct from where the Agent will pull the information it sends back to the LLM.


31 posted on 02/11/2026 12:36:19 PM PST by dfwgator ("I am Charlie Kirk!")
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To: rdcbn1; All

A classic example is lazy and stupid lawyers using AI to write briefs and memoranda. It seems invariably to create fake cases and get those lawyers into terrible trouble. It no doubt has similar deficiencies in other applications. Thus it is basically an immensely powerful idiot child with an absolutely literal way of understanding instructions, a way that can get ignorant, lazy people into terrible trouble.


32 posted on 02/11/2026 12:37:39 PM PST by libstripper
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To: All

Hopefully they hire back Americans and not Indians


33 posted on 02/11/2026 12:40:44 PM PST by escapefromboston (Peace, commerce and honest friendship with all nations, entangling alliances with none.)
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To: fireman15

Who ever invested speil check can go to he’ll...


34 posted on 02/11/2026 12:41:41 PM PST by Vendome (I've Gotta Be Me https://youtu.be/wH-pk2vZG2M)
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To: libstripper

Over reliance on AI is very dangerous especially in things medical and legal. It can be very helpful in some ways.


35 posted on 02/11/2026 12:48:56 PM PST by rdcbn1 (..when poets buy guns, tourist season is over................Walter R. Mead)
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To: TexasGator
A five-year double.

A four month crater. $555 in October to $393 in February (with a dead dog bounce back to $404 at the moment).

No way to put much polish on current managment's performance. The Win11 spyware push, the all-in on AI.

36 posted on 02/11/2026 12:49:22 PM PST by PAR35
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To: rdcbn1

It’s good for generating a first draft.


37 posted on 02/11/2026 12:50:46 PM PST by dfwgator ("I am Charlie Kirk!")
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To: PAR35

“A four month crater. $555 in October to $393 in February”

That 162 point drop was preceded by a four month 164 point gain.


38 posted on 02/11/2026 1:13:36 PM PST by TexasGator (1/.)
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To: PAR35

“No way to put much polish on current managment’s performance.”

Only up 700% over ten years. Outstanding for a three trillion dollar company.


39 posted on 02/11/2026 1:20:06 PM PST by TexasGator (1/.)
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To: dfwgator

Totally agree

I’m a horrible blank sheet type. Give me start and I can take it from there


40 posted on 02/11/2026 1:24:18 PM PST by rdcbn1 (..when poets buy guns, tourist season is over................Walter R. Mead)
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