Companies that cut staff for AI are rehiring at a loss, research shows

Employers that cut staff to make way for AI are increasingly reversing course, according to research gathered by IBTimes UK. Forrester's Predictions 2026 report found 55% of employers that made AI-driven cuts now regret them, a figure workforce analytics firm Orgvue matched almost exactly. A February 2026 Careerminds survey of 600 HR leaders found two in three of those companies were already rehiring and more than a third had brought back over half the roles they eliminated; 30.9% spent more on restaffing than automation saved, and only about a quarter came out ahead. Orgvue puts the true cost at about $1.27 for every $1 recovered once severance, lost productivity and recruitment are counted. Commonwealth Bank of Australia is the cautionary case: it cut 45 customer-service roles in July 2025 on the strength of an AI voice-bot, then reversed the decision within weeks as call volumes climbed.