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Forrester predicts that half of AI-attributed layoffs will be reversed, with 55% of employers regretting workforce cuts made in anticipation of AI automation. Many companies are laying off workers based on future AI promises rather than actual automation capabilities, with research showing AI agents achieving only 58% success rates on single-step tasks. Organizations like Klarna and Duolingo have already walked back aggressive AI strategies, while companies like Salesforce and Amazon continue cutting thousands of jobs citing AI efficiency gains.

AI layoffs to backfire: half quietly rehired at lower pay

I wonder what kind of message that sends to the ones that stay behind, what kind of under-current that creates in the culture, whether people start thinking “Hell, I’m not going to wait to be fired, I better get the hell outta dodge”, you know, those smart unicorns with institutionalised knowledge that you don’t realize your organization depends on.
All I can say is this should be a fun experiment…

AI isn’t magic. It’s just a tool.
It helps you get more done in the same time frame… but it’s use in the right way is not simple.
Which means companies still need good devs to make it work.
So if not for higher pay… the minimum should be the same salary as before.

So now companies will use this AI layoff and rehire for less as a budgeting tactic I bet. It would have to be a truly amazing company for me to even consider returning after getting laid off.
Being laid off and going back says you are top of the list next time and how a company values you and other employees.

AI bubble it’s just starting… make some pop corn