Skip to content
ERP LEADERS
Subscribe to the brief Follow on LinkedIn

The news behind the software that runs companies, explained for everyone.

AI at work

Gartner says a third of AI job cuts will reverse. Rehiring costs more.

Gartner forecast on Wednesday that by 2029, 30% of the employees laid off because AI replaced them will have to be hired back, often at a significantly higher cost.

ERP LEADERS news desk · · First reported by CIO · Edition no. 3

CIO puts the rate inside enterprises higher, at 40%.

Tori Paulman, VP Analyst at Gartner, said executives "who use AI primarily as a tool for cost cutting risk making reductions that are too deep and too soon."

Two other datasets in the same CIO report point the same way. Forrester found 55% of businesses regret AI-driven cuts, and Robert Half found one in three hiring executives has already rehired after an AI layoff.

Mike Wilkes, enterprise CISO at Aikido Security, told CIO: "If 30% of AI-driven layoffs must be reversed, that is an enormous error rate for a strategic workforce decision."

CIO also reports more than half of enterprise clients have been handed a cost-reduction mandate. Headcount is the line those mandates can see.

Which line is your AI business case sitting on, and what happens when a third of the roles come back?

Sources

Spotted an error? Tell us. Every correction is logged on Standards.

Your reading room

Companies in this story
GartnerForrester

Our file on Gartner

  1. 4 NovFiled later

    Gartner says cheaper open AI models can do nine in ten AI agent steps. CFOs sign the contracts that price each step.

  2. 2 NovFiled later

    Gartner found AI drove staff cuts at 47% of surveyed supply chains, averaging 10.5%. Supply chain managers run the smaller teams.

  3. 25 OctFiled later

    AWS announced $1 billion for engineers who build AI inside client firms. Gartner advises clients to plan the exit before they arrive.

  4. 25 OctFiled later

    Forrester sees AI taking 20% of tech spend in 2027. Just 22% of those it polled saw AI lift EBITDA.

  5. 22 OctFiled later

    Microsoft added new controls for European cloud customers. A Gartner analyst said he "would not call this complete control."

All 13 Gartner stories

For your next steering committee

Questions for your own programme. They are not findings about any company in this story.

  1. 1Ask your integrator to name the people on your programme and to confirm which of them are staying.
  2. 2Ask what the contract says about replacing key people, and who approves a replacement.
  3. 3Ask where knowledge of your configuration is written down, outside the heads of the people who built it.

Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01

Founding reader view is on in this browser. It is a reading view, not secure access. Print the working sheet

Founding reader

Welcome back. · Issue 01

1 comment under this story on LinkedIn. Read the discussion

Keep reading

The ERP LEADERS brief Subscribe