AI-driven layoffs are creating a new class of boomerang employees

AI-driven layoffs dominated the headlines this year.

Employers cited AI as the primary reason for almost 40% of the job cuts announced in May 2026, according to a report from outplacement firm Challenger, Gray & Christmas.

But new research shows that some employers may be rethinking those job cuts and reversing course in a trend experts call “AI rebounding.”

In a survey of more than 1,000 U.S. workers, nearly 1 in 5 respondents say that they have been laid off or replaced by AI and then asked to return, according to a recent report from SHL, a talent acquisition and talent management company. The survey, which SHL commissioned from market research firm Propeller Insights, also polled over 1,000 U.K. workers. It was conducted between June and July 2026 and had a margin of error of 5%.

These findings indicate that companies are realizing they “pulled the plug too quickly” on their human employees, according to Lucy Beaumont, global senior vice president of product and design at SHL.

Several large employers like Ford and Amazon have reversed course after enacting AI-related layoffs in the past year. A March report by Orgvue found that 32% of organizations that let workers go due to AI have had to rehire staff.

It’s a mistake for companies to approach AI implementation as if it were any other software rollout, says Joseph Fuller, professor of management practice at Harvard Business School.

From a company’s perspective, “in order to spend money on a new technology, we have to find some savings in the budget, and the way we’ve done that with previous technology deployments is by laying people off.”

But AI is most useful when it’s linked with a human worker’s “contextual intelligence,” i.e. their background knowledge and understanding of an issue, he says: “The more you know about important processes, the more value you can extract from the AI.”

AI can’t fully replace “people that know the business, that know their customers, that have judgment, that can bring empathy, that have that human connection,” Beaumont says.

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