Layoff remorse: Gartner says at least one in three positions eliminated by AI will be restored by 2029–at a higher cost
Gartner on Wednesday said that it expects 30% of the positions eliminated by AI-related layoffs to be refilled by 2029, suggesting that the initial terminations were ill-advised and excessive. “When business and IT executives look back on the early AI era, they will realize their greatest mistake was believing that work automation was the point, when workforce amplification was the opportunity,”…
Gartner warns that at least one-third of AI-driven job cuts will likely be reversed by 2029, potentially at a higher cost. The 30% estimate represents the average impact across organizations of all sizes, with Gartner's research indicating that enterprises might see a 40% rebound. Analysts such as Tori Paulman, VP at Gartner, argue that the initial AI-related layoffs were excessive and misguided, a belief shared by other experts like Frank Dickson and Melody Brue.
They note that many job losses may not be genuine reversals, with roles potentially restructured, contracted out, or offshored rather than rehired. Despite these concerns, some companies have already acknowledged walking back their AI layoffs, such as Klarna. Experts suggest that this trend, driven by a lack of contextual understanding of AI and inadequate economic value, will lead to increased rehiring efforts.
Analysts warn that businesses prioritizing AI as a cost-cutting tool risk diminishing their ability to innovate and compete as AI technology evolves.
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