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description: Companies that laid off workers because of AI are now rehiring them, and workers aren't grateful. An SHL survey found nearly one in five US workers were laid...
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# Companies fired engineers for AI, now they want them back

**[Trends](https://daily.dev/sources/trends)** · 2 min read · 34 upvotes · 7 comments

## Summary

Companies that laid off workers because of AI are now rehiring them, and workers aren't grateful. An SHL survey found nearly one in five US workers were laid off or replaced because of AI and later invited back. An Orgvue study found 32% of organizations that made AI-driven cuts ended up rehiring staff. Only 6.6% of returning workers would refuse to come back, but nearly half want higher pay, 43% want job security assurances, and 30% want an apology. One tweet claims companies are capping AI spend at $100 per engineer per month. Harvard's Joseph Fuller argues companies treated AI adoption like a standard software rollout, when the people they cut were often the ones who knew why the systems behaved the way they did.

## Content

The funniest part of the AI layoff cycle is the sequel. Companies cut staff expecting software to fill the gap, and a growing number are quietly calling people back. Researchers have a name for it: "AI rebounding."

The numbers are not small. An SHL survey found nearly one in five US workers were laid off or replaced because of AI and later invited to return. A separate Orgvue study found 32% of organizations that made AI-driven cuts rehired staff afterward.

## The internet saw this coming

Developers are not being gracious about it. @Hesamation summed it up as laid-off employees being asked back because AI cost too much, "absolutely unpredictable, except by everyone." One video making the rounds goes further, claiming Amazon, Google, Facebook and Microsoft fired a ton of engineers, tried to rehire them, and lost billions along the way. Its core complaint is that people are listening to marketing a little too much and engineering reality not enough.

The bill is also coming due in the other direction. @trikcode says companies that cut workers have now realized AI is expensive, and are setting a $100/month max spend per engineer. That is a long way from the pitch of replacing the engineer.

## Coming back isn't free

The returnees have leverage. Only 6.6% of workers would refuse to return outright. But nearly half want higher pay, 43% want assurances of job security, and 30% want an apology. Getting an apology from a corporation is a tall order, but it's telling that nearly a third of people are asking for one.

## The diagnosis

Harvard's Joseph Fuller argues the root error is treating AI adoption like a standard software rollout. You install software, headcount stays the same, and the budget line moves. AI doesn't behave that way, and the cost and the supervision work don't vanish with the people.

I don't think this proves AI is useless. It proves that the headcount math was done by people reading the slide deck, not the invoice. The engineers who got walked out and then called back with a raise may be the only ones who come out of this looking smart.

## Questions this post answers

### how many companies that laid off workers for AI ended up rehiring them

About 32% of organizations that made AI-driven workforce cuts ended up rehiring staff, according to an Orgvue study. Separately, an SHL survey found nearly one in five US workers were laid off or replaced because of AI and later invited back, a trend researchers call 'AI rebounding'.

_Weighing an AI-driven headcount cut? Developers track how these bets have played out elsewhere on daily.dev._

### what do workers want when rehired after being laid off for ai

Most want compensation for the disruption rather than a simple return. Nearly half of rehired workers want higher pay, 43% want assurances about job security, and 30% want an apology, while only 6.6% would flatly refuse to come back, per survey data on AI-related rehiring.

_Anyone navigating a layoff-then-rehire cycle can follow how these negotiations unfold on daily.dev._

### why did companies lose money by replacing engineers with ai then rehiring them

Harvard's Joseph Fuller argues companies treated AI adoption like a standard software rollout, buying the tool and cutting headcount immediately, without realizing the laid-off employees understood why their systems behaved as they did. Some companies are now also capping AI spend at $100 per engineer per month, adding a new cost on top of rehiring.

_Teams deciding how to sequence AI adoption against headcount can track these cautionary cases on daily.dev._

## Community discussion

Top comments from developers on daily.dev.

**@lynnfredricks** · 5 upvotes

> This tells a story that we can relate to but, a few details seem sketchy to me. The source compiled a report based on data collected on a related topic by companies hired in Los Angeles and London (so the data is split between countries). It is entirely reliant on self reporting with no fact checking. There seems to be an industry split, but no accounting for industries where you just are not going to get people readily talking to you.

**@joriswouters** · 4 upvotes

> I'm sure we'll work something out...
>
> ![GIF](https://static.klipy.com/ii/925f17378dd1893b674a723c07535afe/e2/41/EmgepDC9.gif)

**@jeanclaudegeagea** · 1 upvotes

> AI rebounding was predictable, everyone saw it coming 😅

**@rgodiyal** · 0 upvotes

> ![GIF](https://static.klipy.com/ii/935d7ab9d8c6202580a668421940ec81/81/4c/YtXuBB0N.gif)

**@igds76** · 0 upvotes

> Initial enthusiasm for using AI often led to impulsive actions. The situation will gradually calm down and stabilize. Everything has its pros and cons.

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---

Tags: [#career](https://daily.dev/tags/career), [#leadership](https://daily.dev/tags/leadership)

[View this post on daily.dev](https://daily.dev/posts/companies-fired-engineers-for-ai-now-they-want-them-back-1tvxaejy0)

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