Companies that cut jobs in the rush toward artificial intelligence are now reconsidering some of those decisions. However, workers returning to these roles may face lower salaries and different employment conditions.
Research from Forrester shows that 55% of surveyed employers regret laying off workers because of AI. The research firm also expects companies to quietly reverse more than half of layoffs linked to AI.
The shift suggests that businesses are discovering the limits of replacing human workers entirely with artificial intelligence.
AI Layoffs Could Return as Lower-Paid Jobs
The reversal may not necessarily restore workers to their previous positions or salaries.
Forrester expects some jobs to return through offshore operations or at lower wages. Companies may be finding that complete replacement with AI costs more than initially expected.
As a result, employers could bring back human workers while continuing to use AI tools alongside them.
The trend also raises questions about how companies originally justified some workforce reductions.
Companies Face Concerns Over ‘AI Washing’
Forrester has warned that some businesses could be engaging in “AI washing” when announcing layoffs.
Under this approach, companies may describe workforce cuts as AI-driven even when financial pressures played a larger role. In some cases, mature AI systems may also remain unavailable to replace affected workers.
Therefore, the growing number of reversed layoffs could expose weaknesses in earlier assumptions about automation.
Forrester expects AI to augment around 20% of US jobs by 2030. Meanwhile, the firm expects AI to fully automate about 6% of jobs.
These projections suggest that widespread replacement may remain less likely than a workplace model combining human employees with AI.
Workers Still Fear AI Job Losses
Despite the changing corporate approach, concerns among workers remain strong.
A survey of 4,531 US adults found that 53% of Americans worry AI could cause them or someone in their household to lose a job. Meanwhile, 37% said they were not concerned, while others remained unsure.
Separately, a 2026 Software Finder survey found that 53% of workers feared AI tools could make their roles feel less necessary.
Therefore, even as some companies reconsider layoffs, employees continue to view workplace automation as a major source of uncertainty.
Europe Strengthens Worker Consultation Rules
European companies are also facing tighter requirements surrounding major workforce decisions.
The revised European Works Councils Directive (EU) 2025/2450 requires covered multinational companies to inform and consult employee representatives about significant transnational decisions.
Management must also respond to the views expressed by workers during the consultation process.
However, the directive does not specifically create an AI-layoff law. It also does not cover every European employer.
Instead, the rules apply to qualifying multinational companies and transnational matters. These matters can include major layoffs, outsourcing and restructuring across EU countries.
Member states must adopt the required legislation by January 1, 2028. Most provisions will then apply from January 2, 2029.
The directive also requires effective financial penalties for violations. Company turnover will be considered when authorities determine those sanctions.
The Workplace Is Finding a New Balance
The latest developments suggest that AI may not simply eliminate jobs across the board.
Instead, companies are learning where automation delivers results and where human workers remain essential.
However, reversing an AI-related layoff can also come with new conditions. Workers may return at lower salaries, while companies continue shifting tasks toward automated systems.
Ultimately, the growing reconsideration of AI-driven layoffs highlights the risks of making workforce decisions before automation has fully proved its value.
