Employers are discreetly bringing back individuals who were replaced by AI, offering them lower salaries to return.

      Forrester reveals that 55% of employers regret dismissing employees due to AI, predicting that half of the layoffs attributed to AI will likely be reversed quietly. When jobs return, they may be relocated offshore or offered at substantially lower wages. Additionally, a new directive in Europe mandates consultation prior to making such decisions, with monetary penalties for non-compliance.

      Businesses that reduced their workforce for AI reasons are reconsidering their actions. Forrester indicates that many employers regret these layoffs, forecasting that half of AI-related job losses will be quietly undone. However, this reversal may not be as beneficial as it seems; according to Forrester, returning jobs are often relocated offshore or offered at much lower wages, burdening the affected workers rather than the companies.

      Public concern regarding AI’s impact on employment persists, as evidenced by a Reuters Ipsos poll revealing that 53% of Americans fear AI could displace a worker in their household. Similarly, TNW has posed the question of AI's effect on jobs in Europe. In the workplace, the concern mirrors this anxiety; a report from Software Finder in 2026 found that 53% of employees are apprehensive about AI tools making their roles less essential.

      Jackie Swanson from Gartner captures the disconnect, stating, “Every organization has an AI adoption roadmap, yet nearly none have a transparent strategy regarding its impact on their workforce, their pace, and their future leadership pipeline.”

      The remedies companies are pursuing are mainly voluntary initiatives. For instance, Ironclad's CTO has conducted internal training sessions, Torani has managed to avoid layoffs for 103 years, and Superhuman allows teams to select their own tools. "We do not implement a top-down AI mandate," comments Kenny Mendes, Superhuman's chief people officer, explaining that teams closer to the issue choose their own tools, preventing the perception of change as mere cost-cutting.

      In Europe, this approach does not reflect a management philosophy; there is a legal obligation to inform and consult employees before any decisions that impact their work. This issue is particularly pertinent in a region still debating whether regulations can safeguard jobs without hindering innovation.

      This legal obligation is poised for enhancement. Directive 2025/2450, which updates the rules regarding European Works Councils, must be implemented by January 1, 2028. It mandates timely consultations that allow for comprehensive evaluations before decisions are finalized.

      Furthermore, this directive imposes financial repercussions. Member states are required to enforce effective and discouraging financial penalties based on company turnover during a time when, for example, Meta has laid off 8,000 workers while redirecting billions toward AI infrastructure.

      Thus, the discussion differs significantly between the two continents. In the U.S., the focus is on whether to inform workers about AI's impact on their jobs, whereas Europe is addressing when, how, and the costs of making mistakes in this regard.