1 in 3 Organizations Rehire for More than HALF of AI-Led Layoffs, Finds New Report
- Amanda Augustine
- 2 hours ago
- 4 min read
AI-driven layoffs are accelerating across the U.S., but more than a third of organizations have already rehired more than half of the roles let go due to automating their workforce.
Careerminds surveyed 600 HR leaders and found that while 79% of recent layoffs were driven by technological advancements like AI, 90% say that they would handle those restructures differently if given the chance.
Key Findings:
More than three-quarters (78.8%) of HR leaders say that recent layoffs were driven by technological advancements such as AI.
9 in 10 admit that they would conduct the restructuring differently if given the opportunity.
Resulting in more than a third (35.6%) of organizations having already rehired more than half of the roles previously let go due to AI automations.
Since 2023, frequent AI usage amongst workers in leadership positions has risen from 14% to 44%, according to recent research, highlighting just how significant AI adoption in the workplace is. Therefore, it's unsurprising that as AI adoption rises, so does AI-driven restructuring, with more organizations rethinking roles, responsibilities, and headcount.
The data revealed that more than three-quarters of HR professionals (78.8%) whose organization had layoffs in the last 12 months said that they were due to technological advancements, such as AI replacing roles and responsibilities. Entry-level roles appear to have been hit the hardest, with almost one in three HR leaders (31.5%) identifying them as the most affected by AI-related workforce reductions.
9 in 10 HR professionals regret AI-led restructures
Despite the rapid rise in AI-driven layoffs in the past year, the data found that only 8.4% of HR leaders say their AI-driven restructure delivered on its promises and that they would repeat the process without any changes. In other words, an overwhelming nine in ten admit they would do things differently if given the chance.
AI automation falls short of expectations
While automation was intended to eliminate the roles, our research found the results to be mixed. Two-thirds of HR teams say some roles were successfully replaced with automation, but only 21.4% report that AI fully replaced roles without operational issues. More concerning, one in eight organizations (12.3%) say the problems created by AI-led layoffs outweigh the problems they were meant to solve.
A third of organizations lost critical skills
What became clear after the layoffs was the value of human expertise that had been removed by the reliance on automation. Careerminds found that one in three HR professionals (32.9%) said they lost critical skills and expertise following AI-driven layoffs. Additionally, 28.1% said that their remaining workforce didn’t have the skills to fill the knowledge gap left by the layoffs.
Roles originally eliminated by AI are already being refilled
As a result, the research revealed that many companies are reversing these decisions. More than a third of organizations (35.6%) that conducted these AI-led layoffs have already rehired for more than half of the roles that were initially eliminated, while 32.7% have rehired between 25% and 50%.
Also, the rehiring is happening quickly. Over half of HR leaders (52.1%) said that their organization rehired for previously eliminated roles within just six months, while a further 17.8% did so within three months. Only 2.1% of companies waited over a year, highlighting just how quickly these skill gaps became evident.
75% of organizations found AI-driven layoffs cost their bottom line
Although AI-driven layoffs were thought to save money, Careerminds found that nearly a third of U.S. organizations (30.9%) found that rehiring costs exceeded any savings generated by the layoffs, leaving them financially worse off. A further 42.4% broke even, with rehiring costs cancelling out any initial savings. Only 26.7% came out ahead.
Together, these findings highlight a growing disconnect between the promise of AI-led workforce reductions and the operational, skills, and financial realities organizations face once the dust settles.
According to Amanda Augustine, resident career expert for Careerminds and a Certified Professional Career Coach (CPCC):
“The data shows that many organizations made restructuring decisions based on job titles rather than the full capabilities of their workforce. Employees often bring valuable skills that extend far beyond their current role, but if companies don’t have visibility into those capabilities, they risk eliminating talent they actually still need.
“Before turning to layoffs, organizations should take a comprehensive inventory of the skills already present within their workforce and explore internal mobility opportunities. Not only can this preserve institutional knowledge and morale, but it can also be far more cost-effective than eliminating roles only to realize months later that the expertise still needs to be replaced. Platforms like Careerminds’ Workforce Intelligence help HR leaders map employee skills and model workforce changes in advance, giving organizations the clarity to make smarter decisions about automation, redeployment, and restructuring with greater confidence.”
Campaign methodology: This survey was conducted by Careerminds February 12-14, 2026, gathering insights from 600 HR leaders who have made layoffs in the past 12 months.
Careerminds is a global workforce solutions provider specializing in outplacement, career transition, job architecture, and talent development. We combine modern technology with high-touch, one-to-one coaching to help organizations support employees through workforce change and growth. Our scalable delivery model enables consistent, personalized experiences across 80+ languages and major markets worldwide, offering a more flexible and cost-effective alternative to traditional firms. Follow us on LinkedIn, Facebook, Instagram, X, and YouTube.
Amanda Augustine is the resident career expert for Careerminds, career.io, and its suite of brands: resume.io, TopResume, TopCV, TopInterview, Resume.ai, and others. As a Certified Professional Career Coach (CPCC) and a Certified Professional Resume Writer (CPRW), she has spent more than 20 years helping professionals improve their careers and land the right job sooner. Connect with Amanda on LinkedIn, X, Instagram, and Facebook.
