18.11.2025 06:31

🤦‍♀️ Oops, What Happened? The Great AI Reverse Layoff is Underway

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For the past few years, a chorus of tech executives promised a glorious, automated future where 'smart' AI solutions would handle the grunt work, making human employees - especially those in administrative or routine roles - redundant. Companies enthusiastically swung the axe, replacing people with pixels in the name of efficiency.

Now, a fascinating new trend is emerging: the boomerang employee.

Companies are quietly beginning to rehire the very workers they laid off in the rush to embrace artificial intelligence. According to new data from Visier, a leader in people analytics, a significant 5.3% of laid-off workers have already returned to their former employers. It turns out the shiny new AI wasn't the "universal soldier" promised in the glossy pitch decks.

The reality check is hitting corporate bottom lines, forcing a humbling, three-part admission:

1. AI Automates Tasks, Not Professions

The core error was a fundamental misunderstanding of knowledge work. AI is exceptional at automating discrete, repetitive tasks—summarizing documents, generating draft code, classifying data. But a profession is a complex web of judgment, collaboration, communication, and tacit knowledge.

While an AI can write a mediocre marketing email in seconds, it cannot manage the political dynamics of a team, navigate a client's unspoken needs, or use human intuition to troubleshoot a crisis. When companies replaced a "role," they lost all the surrounding human context and problem-solving ability that the AI simply couldn't replicate.

2. Integration is Pricier Than the Excel Sheet Promised

In the initial cost-benefit analysis, the math was simple: human salary > AI subscription. But the true cost of integration was consistently underestimated.

Implementing AI at scale requires expensive data scientists, constant monitoring, ongoing training to prevent model drift, and custom API development to link systems. What looked like a simple annual subscription turned into a complex, multi-year IT transformation project, often costing more than the salaries it was supposed to replace.

3. Without Humans, the Whole System Stalls

The most painful realization is that AI doesn't thrive in a vacuum. It needs human "glue" to connect different automated processes, interpret ambiguous results, and - critically - fix things when they break.

As one industry observer noted, the process quickly devolves into chaos: a sudden dip in customer satisfaction, a crucial financial report with inexplicable errors, or a failed system update. In these moments, only the human employee who helped build and maintain the system has the institutional knowledge to save the day.

This corporate journey can be perfectly summarized in the Three Stages of AI Acceptance:

The return of the boomerang employees marks a major turning point. It's not a failure of AI technology itself, but a powerful lesson in the irreplaceable value of human expertise, judgment, and the high cost of institutional knowledge - the kind that no large language model can truly replicate.

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Thank you!

Author: Slava Vasipenok


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