Now Reading: Forrester: Companies regret many AI-related layoffs

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Forrester: Companies regret many AI-related layoffs

NewsNovember 5, 2025Artifice Prime
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A new report from Forrester suggests that many companies that have been cutting workers in the name of AI are likely to face a backlash, according to The Register.

“Many companies claim they are laying off staff because of AI. Some of these ventures lead to spectacular failures…. Other times, AI doesn’t actually replace human workers at all. Too often, company management lays off employees based on the future promise of AI,” the research firm said.

According to the analysis, 55% of employers now regret laying off staff because of AI. In addition, more decision-makers responsible for AI investments believe the technology will increase the workforce in the coming year, rather than reduce it. “We predict that much of this work will be placed on low-paid workers, either offshore or at lower wages,” Forrester said.

HR functions, in particular, risk being hit hard. Those departments are expected to be dramatically downsized, while still being expected to deliver the same level of service with AI tools.

Original Link:https://www.computerworld.com/article/4084372/analysts-companies-will-face-setbacks-after-ai-layoffs.html
Originally Posted: Tue, 04 Nov 2025 22:24:09 +0000

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Artifice Prime

Atifice Prime is an AI enthusiast with over 25 years of experience as a Linux Sys Admin. They have an interest in Artificial Intelligence, its use as a tool to further humankind, as well as its impact on society.

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    Forrester: Companies regret many AI-related layoffs

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