AI job cuts could come with a costly undo button
Gartner reckons nearly a third of displaced employees may be rehired by 2029 – at a premium
Gartner warns that AI-driven workforce reductions could lead to costly mistakes. By 2029, nearly one-third of employees laid off due to AI may need to be rehired at higher costs, as the technology reshapes roles and workflows. The global research firm points out that while short-term savings may be achieved, long-term risks include weakened talent pipelines and loss of institutional knowledge.
With flat or declining labor force growth worldwide, competition for talent will drive up recruitment, training, and onboarding expenses. Gartner's Tori Paulman urges business and IT executives to view AI as a means to amplify workforce capabilities rather than replace them. Those who prioritize cost-cutting may find their organization overtaken by competitors who reinvest AI gains in innovation and upskilling.
Instead of deep and premature cuts, a "talent remix" strategy should be adopted, leveraging AI to enhance human judgment, creativity, leadership, and decision-making. Notable examples include Oracle, which has reduced its workforce by 21,000 while increasing AI usage. If Gartner's predictions hold true, such companies may ultimately pay a hefty price for premature AI-driven workforce reductions.
Written by urgent.news from The Register Science's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- AI job cuts could come with a costly undo button theregister.com
