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Home > Business News > Companies that reduced staff with AI are knocking on former employees' doors again

Companies that reduced staff with AI are knocking on former employees' doors again

Some companies that reduced their workforce by relying on artificial intelligence have turned back to hiring after realizing that technology cannot replace human experience.

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Published: 02.11.2026 15:19 Updated: 02.11.2026 15:19
Companies that reduced staff with AI are knocking on former employees' doors again

Some companies that reduced their staff by implementing artificial intelligence systems have begun turning back to human employees after realizing that automation could not take on every task to the expected extent. In the business world, this trend is defined by experts as the “AI boomerang.”

According to a report by the Associated Press based on data from the human resources firm Robert Half and interviews with labor market experts, some companies in fields such as finance, marketing, law, and healthcare first closed positions citing artificial intelligence or automation; they then rehired for the same or similar roles.

AI text and silhouettes of employees at computers in front of a blue background.
The impact of artificial intelligence technologies on the workforce is on the agenda of companies.

The main reasons for these steps backward include the fact that AI tools require more human oversight than anticipated and that they cannot fully replace the institutional knowledge of experienced employees. According to experts, human contribution remains decisive, especially in areas such as operational experience, team coordination, and critical thinking.

When it comes to critical thinking, collaboration, creative approaches, and institutional knowledge, AI definitely cannot mimic these. I think this is exactly the point where companies are starting to realize the truth: 'We really need humans to run this business.'

— Bill Driscoll, senior executive at Robert Half

KLARNA AND FORD EXAMPLES

One of the notable examples of this turnaround has been the Swedish-based payment company Klarna. The company began rehiring personnel in its customer service department in 2025. Klarna CEO Sebastian Siemiatkowski had previously admitted that they had relied too heavily on an AI chatbot to reduce costs.

Automotive manufacturer Ford also announced in June that it had hired or promoted 350 experienced engineers after the AI tools used in its quality control processes failed to meet expectations. In an assessment from the company, it was stated that combining AI with the technical expertise of employees helped improve quality.

Forrester principal analyst Betsy Summers points out that employers may underestimate the “invisible” contributions that are not in job descriptions but keep the business running. Maintaining team trust, sensing the needs of colleagues, and taking spontaneous initiative are counted among these contributions.

According to Brooks Holtom from Georgetown University, some institutions did not examine their internal workflows in sufficient detail before switching to automation. Lucy Beaumont from SHL emphasizes that companies do not always openly announce that they are reversing their AI substitution decisions, and that calling back laid-off employees is not always easy.

Conversely, layoffs continue in the technology sector. After laying off 14,000 people in the fall of 2025, Amazon terminated the jobs of approximately 16,000 more employees worldwide in January 2026. While company management explained this step with the goal of reducing bureaucracy and increasing personal accountability, CEO Andy Jassy had previously warned that the spread of AI could lead to staff reductions in the coming years.


News Source: 12punto

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artificial intelligence layoff hiring Klarna ford amazon Robert Half Automation