Analysts warn AI layoffs could spark a new wave of offshoring – enterprises are rehiring after workforce cuts, but either outsourcing or at lower rates of pay

A wave of rehiring in the wake of AI layoffs is expected in 2026, but the trend could prompt a revival of offshoring practices as enterprises look to keep costs down.

That's according to predictions from Forrester, which noted that 55% of companies that cut staff in favor of automation regretted the move.

"Many firms are so focused on chasing AI-fueled efficiencies that they haven’t determined what AI can actually offer, causing them to rehire terminated roles," note the authors of Forrester's Future of Work report.

That may sound like good news for workers caught in repeated waves of mass layoffs, but Forrester noted that rehiring may not come at the same pay rate or involve offshoring or outsourcing.

"We predict that much of this work will be given to lower-wage human workers, offshore or at lower salary, under the guise of AI," the report added.

Forrester specifically pointed to Amazon's AI-powered retail technology that enabled shoppers to leave without going through the till, which was found to be largely managed via remote Indian workers rather than genuine automation.

"That is what we’re facing across industries going into 2026: More employers will hire similar low-cost 'ghost workers' because AI isn’t ready to do the job."

The consultancy added that this will lead to a "deepening culture energy chasm" that will lead to employees disengaging and coasting – the analyst firm defines "coasters" as the 28% of staff who don't think their employer deserves their energy.

HR departments may not be able to help tackle surging workforce discontent, either, as it will be among one of the hardest hit corporate divisions. Forrester predicted that HR staffing will be reduced by as much as half as companies shift to AI agents.

Convenient excuses

AI-related layoffs have become a recurring talking point over the last year, with enterprises cutting staff in favor of automation. Klarna, for example, reduced its customer service workforce amidst a sharpened focus on AI.

Elsewhere, a host of tech companies have pointed to AI as a key motivation behind workforce cuts.

However, Forrester noted that these AI-inspired layoffs often don't result in staff being replaced by the technology. Instead, it's used as an excuse to reduce staff in response to challenging macroeconomic conditions or based on future expectations.

“Too often, the C-suite lays workers off for the future promise of AI,” the report noted, suggesting some business leaders are pinning their hopes on the technology eventually coming good.

Forrester’s study isn’t the only research to highlight a growing sense of regret among leaders cutting staff for AI. Indeed, analysis from Orgvue found that 39% of UK business leaders cut staff due to AI adoption last year, but more than half admitted they acted rashly.

This reactionary approach could create long-term problems, the study noted, resulting in future internal skills gaps.

Human workers are still needed in AI era

Forrester noted that not all companies are rolling out AI to cut staffing costs, but turning to the technology in an attempt to innovate – and that requires having the right talent in place.

Indeed, 57% of those surveyed by the analyst firm noted that they believe AI will lead to a jump in employment rather than a decline.

"[Some] employers genuinely want to offer innovative solutions to problems such as affordable housing or access to healthcare, but their efforts will fall flat if they miss the glaring opportunity to navigate uncertainty by tapping their employees’ creativity and experience," the report added.

Given that, it's perhaps no surprise that Forrester also predicts that enterprises will delay a quarter of their AI spend into 2027 as they struggle to find any value to rolling out the technology.

"In 2026, the AI hype period ends as the pressure to deliver real, measurable results from secure AI initiatives intensifies," said Sharyn Leaver, chief research officer at Forrester.

"As the era of volatility continues, tech and security leaders will be called upon to recalibrate investments under tighter financial scrutiny and governance while navigating increasingly complex geopolitical and economic risks."

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