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

"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."

"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."

A wave of rehiring is expected in 2026 as companies reverse staff cuts made for AI-driven automation. Fifty-five percent of firms that replaced workers with automation later regretted doing so. Many companies pursued AI efficiencies without fully understanding AI capabilities, prompting rehiring of terminated roles. Rehiring often involves lower wages, offshore labor, or outsourcing rather than original pay parity. Retail automation examples showed human remote workers managing systems marketed as AI. These moves will deepen a culture energy chasm, increasing disengagement—28% of staff already classify as 'coasters.' HR functions face major reductions, with staffing potentially halved as firms adopt AI agents.

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