How can employers gain trust of workers rehired after AI layoffs?

Many Canadian employers seem to be admitting that they have made a mistake in laying off workers due to artificial intelligence (AI), based on the findings of a recent report.

Right now, 34% of employers who cut jobs during early AI adoption have since reinstated those positions or very similar ones, a trend the company has labelled "AI correction hires," reports Robert Half.

The talent solutions firm's survey of 1,365 hiring managers across Canada. The survey spanned the fields of finance and accounting, technology, marketing and creative, legal, administrative and customer support, and human resources.

Deborah Bottineau, Managing Director at Robert Half, told HRD that many organizations moved too quickly in eliminating roles without fully understanding the limits of the technology. 

"Early AI adoption helped automate certain routine tasks, but many organizations underestimated how much human judgment, context, and oversight those roles require," Bottineau said in an email to HRD. "Ultimately, AI works best as a productivity tool, not a replacement for people." 

Recently, one CEO announced huge job cuts because of AI. Threats to his family followed. 

Why are the roles coming back?

The research identified the leading reasons employers reversed course on AI-related job cuts:

• AI required more human oversight and quality control than expected (38%)
• Increased business demand required more overall capacity (38%)
• The eliminated role involved relationship management AI could not replicate (37%)
• AI tools were not fully or consistently adopted across teams (37%)
• The role required institutional knowledge or context AI could not replace (36%)
• Productivity gains were smaller than expected (35%)
• Risk or compliance concerns emerged without a human in the role (35%)
• Remaining team members experienced burnout or workload strain (33%)

A separate Robert Half survey of 1,005 Canadian workers aged 18 and over found that employees using generative AI spend 33% of their total task time checking accuracy and refining the final deliverable, underscoring the continued need for human oversight.

OpenAI CEO Sam Altman said on Tuesday that AI had not delivered the sweeping job losses he once anticipated — and that his earlier warnings about entry-level white-collar roles being rapidly eliminated had simply not come true.

Rethinking the role before reposting

Bottineau said employers looking to refill these positions should not simply repost the original job description. "To do this well, employers need to rethink the role, not just repost it," she said. "In many cases, these positions are coming back with a stronger emphasis on AI literacy combined with core professional and human skills."

Successful hiring strategies focus on candidates who can work alongside AI, validate outputs, and adapt as tools evolve, she added.

Hiring managers should also be prepared for a more demanding recruitment process, Bottineau said, noting that 60% of employers consider soft skills such as critical thinking, communication and adaptability essential for working alongside AI. "In many cases, employers may be recreating roles with broader or more strategic scope, rather than hiring for exactly the same position as before, and they need to be clear about their own needs before communicating that with candidates," she said.

Rebuilding trust and retention

Candidates whose previous roles were displaced are likely to scrutinize offers more carefully, paying close attention to stability, clarity of expectations, and growth opportunities.

Retention will also depend on how employers address worker concerns about future job security, Bottineau said. That includes investing in training, setting realistic workload expectations, and demonstrating a clear plan for how AI will be used responsibly within the organization.

"Demonstrating stability, offering opportunities to upskill, and reinforcing the long-term value of human expertise alongside AI are key to rebuilding trust and engagement," Bottineau said. "Retention here will also come down to making employees feel like they're part of the future of the business and its solutions to new challenges."