Companies that rushed to cut jobs because of artificial intelligence are increasingly reconsidering those decisions, with research showing that more than half of employers now regret AI-driven layoffs.
Forrester reported that 55% of surveyed employers regretted laying off workers because of AI, while the research firm predicts that more than half of layoffs attributed to AI will eventually be quietly reversed.
Jobs Could Return With Lower Pay
The reversal may not necessarily benefit the workers who originally lost their jobs.
Forrester expects some roles to return offshore or at lower wages, as companies discover that replacing human workers entirely with AI is more difficult or expensive than expected.
The firm also warns that some companies may be engaging in “AI washing,” where layoffs primarily driven by financial considerations are presented as the result of future AI automation even when mature AI systems are not ready to replace those workers.
Forrester expects AI to augment around 20% of US jobs by 2030, while fully automating about 6%, suggesting that widespread replacement of workers remains less likely than a combination of humans and AI.
Workers Remain Worried
The changing corporate approach has done little to reduce fears among workers.
A Reuters poll found that 53% of Americans worry AI could cause them or someone in their household to lose their job. Another 37% were not concerned, while the remainder were unsure. The survey included 4,531 US adults.
Separately, a 2026 Software Finder survey found that 53% of workers worry AI tools could make their role feel less necessary.
Europe is Tightening Worker Consultation Rules
European companies also face stricter rules around major workforce decisions.
The EU’s revised European Works Councils Directive (EU) 2025/2450 requires covered multinational companies to provide information and consult employee representatives on significant transnational decisions before those decisions are adopted. Management must also respond to the workers’ opinion.
The rules are not specifically an AI-layoff law and do not apply to every European employer. They concern qualifying multinational companies and transnational matters, which can include major layoffs, outsourcing and restructuring affecting workers across EU countries.
Member states must adopt the required legislation by January 1, 2028, with most provisions applying from January 2, 2029. The directive also requires effective financial penalties for violations, with company turnover considered when setting sanctions.
The emerging picture is therefore less about AI simply eliminating jobs and more about companies learning where automation works, where human workers remain necessary, and how expensive getting that calculation wrong can be.
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