Employers are quietly rehiring the people AI replaced, and paying them less to come back

Employers are quietly rehiring the people AI replaced, and paying them less to come back

Forrester finds 55% of employers regret their AI layoffs, while in Europe, a revised directive will soon require consultation before such decisions.

The Reversal of Layoffs

The companies that cut jobs for AI are having second thoughts. Forrester reports that 55% of employers now regret laying off workers due to AI, and expects half of all AI-attributed layoffs to be quietly reversed. However, these jobs are not returning under the same conditions:

They come back offshore or at significantly lower wages, which means the correction costs the worker rather than the employer.

Public Perception of AI’s Impact on Jobs

A Reuters Ipsos poll revealed that 53% of Americans worry AI will put someone in their household out of work. Similarly, a 2026 Software Finder report found 53% of workers fear AI tools will make their roles feel less necessary.

Addressing the Impact of AI on Workforce

While some companies are implementing voluntary measures to address the issue, such as internal classes, providing job security, and allowing teams to choose their own tools, Europe is taking a more regulated approach.

European Regulations

In Europe, consultation with workers before decisions that reshape their work will be a legal duty, backed by financial penalties. This revised directive aims to ensure member states impose effective sanctions on companies that fail to consult. The timing of this regulation aligns with Meta’s recent job cuts and significant investment in AI infrastructure.

Global Discussions

While America debates informing workers about the impact of AI on their jobs, Europe is focusing on when and how to consult employees before such decisions, along with the consequences for non-compliance.