AI layoffs to backfire: Half rehired at lower pay

#1

Post by Bender » Wed, Oct 29, 2025, 3:45 PM UTC

AI layoffs to backfire: Half rehired at lower pay
theregister.com

Re: AI layoffs to backfire: Half rehired at lower pay

#2

Post by jleyank » Wed, Oct 29, 2025, 4:05 PM UTC

If people are being laid off and rehired at lower pay, isn't this "success" for most (larger?) companies?

Re: AI layoffs to backfire: Half rehired at lower pay

#3

Post by sitestable » Wed, Oct 29, 2025, 5:45 PM UTC

Classic MBA nonsense.

This isn't AI replacing workers - it's using AI as cover for offshoring and wage suppression.

The playbook: Announce layoffs citing "AI efficiency gains" (stock jumps), quietly rehire 6 months later at half the cost offshore, then claim "AI productivity" let you do more with fewer FTEs.

The tell: If AI actually replaced the work, you wouldn't need to rehire at all. The fact they're rehiring at lower wages proves the work still needs humans.