US Firms Rehiring Veterans After AI Layoffs Backfire

From 2020 up until now, American car manufacturer Ford reduced its workforce by 5,000 individuals as it began implementing artificial intelligence (AI) in assessing vehicle quality and reviewing designs. Despite these efforts, problems with product quality persisted. In just the past year, the firm initiated 152 recalls, marking the most among all companies in the U.S. auto sector. Eventually, Ford brought back 350 experienced engineers, some of whom were former employees, to address these quality concerns. These professionals are training newer staff members, overseeing design evaluations, and contributing to enhancements in AI systems. Ford mentioned, “Artificial Intelligence serves as a valuable asset, yet its effectiveness depends entirely on the data used to train it,” adding, “we underestimated the idea that merely integrating AI and entering specifications would lead to superior outcomes.”

◇Recalling Employees Cut by AI

A Swedish financial technology firm named Klarna revealed in 2024 that it launched an artificial intelligence assistant, noting, "AI manages the tasks handled by 700 human representatives." Following this, the number of human support personnel dropped by more than 1,000. The company concentrated efforts on advancing AI solutions and paused recruitment for over twelve months. Nevertheless, client contentment declined significantly within six months. In response, Klarna started bringing back customer service workers so clients could connect with real people as needed. Klarna’s chief executive officer, Sebastian Siemiatkowski, remarked, "Our approach centered entirely on cutting costs went too far," adding, "We plan to focus on enhancing the quality of interactions between humans and customers going ahead."

A study conducted by the staffing consultancy Robert Half found that 32% of 2,000 U.S. hiring managers indicated they removed specific job roles because of AI but then hired again for those exact positions. The market analysis company Forrester noted that 55% of employers felt remorse over firing workers as a result of AI implementation. According to Gartner, half of businesses that cut down on customer service and operations teams thanks to AI are expected to bring back comparable roles by 2027. Gartner added, “Artificial intelligence isn’t yet advanced enough to completely take over the skills, compassion, and decision-making abilities offered by people.”

A U.S.-based technology firm, IBM, launched "AskHR," an artificial intelligence system designed to handle administrative functions like requesting time off and managing salary processing, thereby streamlining 94% of standard HR activities. This initiative led to a reduction of more than 200 HR personnel. Nevertheless, the AI-powered chatbot was unable to manage the remaining 6%, covering areas such as moral conflicts, intricate workplace challenges, and employee interaction concerns. Despite planning to cut its support staff by 7,800 people (a decrease of 30%), IBM opted to significantly increase recruitment within the United States this year.

◇ Decreases in Positions for Junior Developers

Nevertheless, positions involving highly repetitive duties, like those of junior developers and administrative personnel, are quickly being taken over by artificial intelligence. As per the "2026 AI Index" report published by Stanford University’s Human-Centered Artificial Intelligence Institute (HAI), job numbers for software developers between the ages of 22 and 25 in the United States dropped by almost 20% when compared to 2022. On the flip side, jobs for developers in their 30s through 40s saw an increase of 10-15%. Businesses today favor experienced professionals capable of examining AI-created code and developing complete system architectures. A U.S.-based staffing advisory company named Challenger, Gray & Christmas reported that the count of workers terminated by American firms because of AI rose from 12,742 in 2024 to 101,743 during the first half of this year. Although AI has reinforced the importance of human involvement in specific domains, it is currently driving down employee numbers in beginner-level and routine tasks that are simple to automate.

Even among AI firms in Silicon Valley, there is greater demand for positions that require human-only capabilities. The AI firm Anthropic is currently seeking candidates for a "Community Lead" role focused on promoting interaction among individuals. This job, which prioritizes teamwork rather than technological innovation, offers a maximum annual salary of $320,000 (around 500 million South Korean won). According to an industry professional, "Skills such as human decision-making, interpersonal abilities, and practical knowledge—in areas where artificial intelligence still falls short—are growing increasingly important." They added, "As businesses integrate AI into their operations, the importance of employees who can review AI outcomes, manage unusual cases, and influence others will continue to rise."

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