Organizations Forced to Rehire Managers after AI-driven Layoffs

Artificial intelligence (AI) has proven capable of handling many functions within an organization, but it still cannot replace effective management — and companies risk significant challenges by trying.

Among organizations that conducted AI-driven layoffs, a new study from HR solutions platform Careerminds revealed that 32.7 percent have already rehired between 25 percent and 50 percent of the roles they initially eliminated. For those that eliminated roles altogether to make room for AI, 35.6 percent said they had to bring back more than half of those positions. Most affected by these decisions are managers, whose jobs are often the first to go despite their importance.

"People have taken out large portions of management and replaced it with AI functions thinking that it could make those leaders more productive and manage larger teams at a fraction of the cost," said Doug Dennerline, CEO of performance management company Betterworks. "But it's a mistake that's probably going to cause much bigger problems."

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