Companies that have laid off workers in the name of artificial intelligence may end up rehiring some of them, potentially at a higher cost. Gartner forecasts that about 30% of workers dismissed and replaced by AI could be rehired by 2029, citing inadequate workforce planning as a reason for rushed decisions.
Gartner says many organisations decide how many employees to cut before determining what work needs to be done. Caitlyn McDonough, the consultancy’s vice president and an HR analyst, says companies should first identify which work matters most to their business strategy and how it is changing, then decide what mix of people and technology can deliver the required results.
Only 19% of companies say they have practices that help leaders understand how work is changing, assess AI’s impact and align talent plans with business goals. That figure comes from a Gartner survey of 297 HR leaders conducted in July 2026.
Rather than starting with existing roles, skills and headcount, Gartner recommends working from business strategy. Organisations should identify the capabilities they will need, forecast future work, assess available human and AI-supported capacity, and address gaps by weighing options for cost, risk and speed. The consultancy also advises establishing governance to set priorities and fund the necessary investments.
A separate Oxford Economics study, cited by ITPro, suggests that some job cuts attributed to AI may instead reflect weaker demand or past overhiring. The researchers say describing layoffs as part of AI adoption may present them to investors as technology-led modernisation. They also conclude that evidence of a broad AI-driven transformation of the labour market remains limited: while AI is affecting some roles and sectors, companies are not yet replacing workers with AI systems on a significant scale.
Sources: Pplware.