Companies Are Rehiring Laid-Off Employees - Artificial Intelligence Did Not Deliver 0 17

A study by the analytics company Visier, which examined data from 2.4 million workers across 142 companies worldwide, showed that the share of employees who were rehired after being laid off is steadily increasing and has already reached 5.3%.

According to Visier expert Andrea Derler, artificial intelligence has become a "convenient excuse" for layoffs, but it is not always justified.

"Expectations that technology will completely replace people are not being met," she says.

AI can automate individual tasks, but it cannot take on everything - especially where professional intuition and understanding of context are required. Therefore, companies that have lost key specialists are now forced to bring them back to ensure that their systems do not come to a halt.

Derler also notes that leaders often underestimate the cost of implementing AI. Building infrastructure, from servers to data protection, is significantly more expensive than initial estimates. This forces businesses to reassess the benefits of automation and compare them with the costs of maintaining experienced employees.

A study by MIT confirms that 95% of companies have yet to see a financial return on their investments in artificial intelligence.

Moreover, even traditional cost-saving measures turn out to be not so beneficial. According to the Orgvue platform, for every dollar "saved" on layoffs, companies spend an average of $1.27 on severance, insurance, and other expenses.

As a result, more and more companies are recognizing that they rushed to write off people. Layoffs look good on reports, but in the long run, they lead to a loss of expertise and additional costs. Those who bet solely on AI are now bringing back the very specialists they recently let go.