## The AI Layoff Reversal Trend

**AI redundancies are coming full circle** as forecasts warn employers will need those workers back. Employers that cut staff as they rolled out artificial intelligence may soon be hiring many of those workers back, according to new predictions that suggest **AI-triggered layoffs have overshot**.

![When AI redundancies backfire: Employers now scrambling to rehire humans](https://cdn-res.keymedia.com/cdn-cgi/image/w=1000,h=600,f=auto/https://cdn-res.keymedia.com/cms/images/us/035/0365_639056972815609011.png)

## The Startling Predictions

**Gartner now forecasts** that by 2027, **50% of companies that attributed customer service headcount reductions to AI will rehire staff** to perform similar functions, even if the roles return under different titles.

Forrester's 2026 future of work outlook reaches a similar conclusion: "We expect half of AI-attributed layoffs to be quietly reversed, with jobs returning offshore or at lower wages."

Both forecasts point to a growing risk for employers – and HR leaders in particular – that early, high-profile cuts justified by AI may prove both **short-lived and costly to unwind**.

## Have We Gone Too Far with AI Replacements?

The prediction comes amid recent reports of widespread redundancies due to AI. Amazon was previously reported to axe 16,000 jobs to push for AI and efficiency, following an earlier 14,000 layoffs across the organisation.

Data from Challenger, Gray & Christmas revealed that **AI was responsible for 54,836 announced layoff plans in 2025**, and has been cited in 71,825 job cut announcements since 2023.

But according to Gartner, the story behind recent staff reductions is more complicated than a simple productivity revolution.

"While AI-driven layoffs have captured attention, the reality is more complex," said Kathy Ross, senior director analyst in Gartner's Customer Service & Support practice.

Gartner's October 2025 survey of 321 customer service and support leaders found that **only 20% had actually reduced agent staffing because of AI**. Most said headcount remained steady even as they handled more customers, indicating that **AI was primarily augmenting human work rather than replacing it**.

Forrester also noted that some organisations are engaging in an **"AI washing" trend**, where they attribute layoffs for future AI implementation despite the cuts being financially motivated.

"AI simply isn't mature enough to fully replace the expertise, empathy, and judgment that human agents provide. Relying solely on AI right now is premature and could lead to unintended consequences," said Emily Potosky, senior director, research in the Gartner Customer Service & Support practice.

## The Layoff Boomerang Trend

This consequence was felt first-hand by the Commonwealth Bank of Australia, which last year walked back on its decision to lay off a number of employees following the introduction of a new voice bot system.

"CBA's initial assessment that the 45 roles in our Customer Service Direct business were not required did not adequately consider all relevant business considerations and this error meant the roles were not redundant," a CBA spokesperson previously told HRD.

The situation is part of what experts are calling a new **"layoff boomerang" trend**, according to Axios, citing data from people analytics firm Visier.

Its recent report showed that **5.3% of terminated employees are being rehired by their former employers**, an uptick from a relatively stable rate since 2018.

Andrea Derler, Visier's head of research and value, told Axios that was an indicator of AI-driven hiring and firing practices.

"The idea that now AI is coming and replacing absolutely every job is still really not proven," she said.

In fact, data indicates that **employers are realizing the limits of AI** and are being forced to reinvest in human employees.

"As organisations encounter the limits of AI and rising customer expectations, they will need to reinvest in human talent to sustain service quality and growth," Ross stated.

## What Should Employers Do Moving Forward?

Experts all suggested the need to plan carefully in the future when managing job cuts related to AI.

"Leaders should ask: Which roles can be replaced by AI? What's the cost, what's the risk, and what's the plan for the people and skills left behind?" Visier said on a LinkedIn post.

Forrester stressed that businesses should invest in rather than replacing human employees.

J. P. Gownder, vice president and principal analyst at Forrester, said how organisations handle AI will define more than just their future success.

"To navigate the complexity around the human and AI era, leaders must prioritise governance and invest in their people — treating AI not as a replacement for human talent but as a tool to enhance it," Gownder said.

AI redundancies come full circle as forecasts warn employers will need those workers back

AI Layoffs Backfire: Why Companies Are Desperately Rehiring Human Customer Service Agents

## Self-Service Reshaping Retail in Australia

Self-service checkout has become the **preferred option** for consumers in Australia, but shoppers are calling for significant improvements in the technology.

These insights come from a comprehensive study titled **"The Evolution of Self-Checkout in Australia: Insights from Retailers and Consumers,"** conducted by IDC and sponsored by Diebold Nixdorf.

![Self-checkout technology in retail](https://nmgprod.s3.amazonaws.com/media/file/68/82/3d9b332a34fec8cfefa11cd11394/cover_image__zh8izLeV__AdobeStock_86748766.jpeg.960x540_q85_crop_upscale.jpg)

*Photo: Adobe Stock*

### Key Research Findings

The study is based on two IDC online surveys conducted across Australia in early 2025:
- **1,000 consumers** surveyed
- **180+ retailers** from various segments including food and beverage, grocery, fashion and apparel, and fuel and convenience

### Consumer Preferences and Pain Points

More than **two-thirds of Australian consumers** prefer self-checkout, particularly when:
- Shopping alone
- In a hurry
- Wanting to avoid long queues

However, several issues continue to frustrate shoppers:
- **Checkout delays**
- **Trust concerns** with the technology
- **Inflexible systems** that don't adapt to different shopping scenarios

Australian shoppers expect better in-store experiences, including:
- **Intuitive help** when needed
- **Support for diverse payment methods**
- **More choice** in shaping their own shopping process

### Industry Expert Insights

Stephanie Krishnan, associate vice president at IDC Asia/Pacific, emphasized: "For today's shoppers, **speed, privacy and control are non-negotiable**. This means that retailers are at a point where they must eliminate delays, build trust and offer flexible, seamless checkout experiences, or risk losing customers at the final step of the journey."

Kristie Longhurst, general manager for retail in Australia and New Zealand at Diebold Nixdorf, noted that more retailers are investing in **AI and hybrid checkout models**: "This has been resonating well with consumers and also helps combat additional key challenges retailers are currently facing, like improving in-store process efficiency and increasing workplace attractiveness, as it is becoming harder and harder to attract and retain store staff. **AI-powered checkout solutions** that are reliable and easy to service combined with hybrid checkout lane concepts enable them to focus on consumer service and more value-added tasks."

The study reveals that while self-service technology has gained widespread acceptance, there's a clear gap between current implementations and consumer expectations that retailers must address to remain competitive.

Self-service is a preferred checkout option for consumers in Australia but shoppers want improvement in the technology.

Australian Shoppers Demand Better Self-Checkout Tech: Why Retailers Must Adapt or Lose Customers

Zendesk has announced the appointment of Craig Flower as its new Chief Operating Officer, a move that signals a major shift in the company's strategy to become an AI-first leader in customer service. This appointment highlights Zendesk's commitment to enhancing customer engagement and operational performance through advanced technology.

**Craig Flower: A Seasoned Leader Driving Transformation**

Flower, who previously served as Zendesk's Chief Information Officer, brings over two decades of experience in technology and operations. In his prior role, he leveraged AI and machine learning to improve digital tools and insights across the company. His promotion to COO underscores Zendesk's focus on accelerating its AI transformation and delivering exceptional value to customers.

**AI Reshaping Customer Service: A Strategic Imperative**

Tom Eggemeier, CEO of Zendesk, emphasized that **AI is fundamentally reshaping the future of customer service**, requiring companies to operate with greater speed and efficiency. Flower's leadership is expected to bring teams together and turn Zendesk's vision into measurable outcomes, ensuring alignment with customer needs.

**Key Responsibilities as COO**

In his new role, Flower will concentrate on:
- **Maximizing customer value from AI tools** by simplifying adoption and providing exceptional support.
- Fostering knowledge sharing through a dedicated center of excellence where customers and employees can exchange best practices.
- Accelerating company strategy by innovating processes, aligning operations, and enabling faster execution.

Flower stated, "**Strategy matters, but execution wins.**" He aims to lead AI for Service by staying customer-obsessed and achieving strong results through efficient processes.

**Background and Experience**

Before joining Zendesk, Flower served as Chief Technology Officer at TriNet, where he replatformed products and accelerated the transition to cloud. Earlier, as Chief Information Officer at Hewlett-Packard, he drove business model innovation and IT transformation, contributing to significant revenue growth.

**About Zendesk**

Zendesk powers exceptional service globally with its AI-powered Zendesk Resolution Platform. This platform integrates AI Agents, a knowledge graph, and human expertise to enhance customer interactions. Easy to use and scale, Zendesk helps companies strengthen relationships and improve efficiency. Learn more at [www.zendesk.com](https://www.zendesk.com).

/PRNewswire/ -- Zendesk recently announced the appointment of Craig Flower as Chief Operating Officer. In this role, Flower is responsible for strengthening...

Zendesk's New COO: How AI and Customer Obsession Are Redefining Service Excellence

Customer experience leaders often focus on building trust with customers—how it's earned, lost, and how fragile it has become with the rise of AI. However, this trust challenge is now emerging much earlier in the value chain: within the hiring process itself.

Survey data from the Institute for Corporate Productivity (i4cp) reveals that deepfakes and synthetic identities are infiltrating hiring processes, directly impacting customer-facing operations. A recent incident at an AI security startup, where even an experienced CISO was nearly deceived by a deepfake candidate, underscores that CX leaders can no longer leave this issue solely to HR or security teams.

**Hiring risk has become customer risk.**

## Cautionary Tale from a Security Startup

In a survey of talent acquisition executives, i4cp found that **59 percent are concerned about identity fraud or impersonation via deepfake video or audio**. Lorrie Lykins, VP of research at i4cp, stated:

> “Deepfaking and identity fraud are chief among the concerns of organizations when it comes to the use of AI in the hiring process.”

That concern is well-founded.

If any organization might be expected to spot a deepfake quickly, it would be an AI security firm specializing in threat modeling. Yet, this is what makes the recent experience of Expel co-founder and CEO Jason Rebholz so compelling.

After Rebholz posted a security researcher vacancy on LinkedIn, a new connection introduced a potential candidate they claimed to have worked with previously and sent a link to a resume hosted on Vercel, an app-building platform that integrates with AI tools. This raised suspicion that the resume was generated by Claude Code, but Rebholz noted this wouldn't be unusual for a developer.

The connection's urgency to schedule an interview raised a red flag. When the candidate joined the video call with their camera off before switching it on with a virtual background, warning signs became harder to ignore. The candidate's face appeared "blurry and plastic," with visual artifacts flickering in and out. Even so, Rebholz hesitated.

> “What if I’m wrong? Even though I’m 95 percent sure I’m right here, what if I’m wrong and I’m impacting another human’s ability to get a job? That was literally the dialog that was going on in my head, even though I knew it was a deepfake the whole time.”

Rebholz continued the interview and sent video clips to fraud detection firm Moveris for analysis using its deepfake detection technology, which confirmed the deception. As Rebholz said:

> “It’s one of the most common discussion points that pops up in the CISO groups I’m in. I did not think it was going to happen to me, but here we are.”

The incident highlights that deepfakes exploit more than technical blind spots—they target social norms, empathy, and the fear of making the wrong call.

## Deepfake Job Candidates Put Customer Experience at Risk

This incident underscores the risk to customer experience teams, which operate at a unique intersection of trust, access, and scale.

Customer-facing roles, such as contact center agents, onboarding specialists, support engineers, and trust and safety teams, often rely on remote hiring, global talent pools, and rapid scaling. This makes these functions especially attractive targets for fraudsters seeking access to customer data or internal processes.

**A single compromised hire can have an outsized impact**, exposing customer data, manipulating service interactions, or damaging a brand, potentially with regulatory fallout.

Over half (54 percent) of respondents to the i4cp survey reported encountering candidates in video interviews they suspected of using AI tools to assist with answering questions or completing technical challenges. Despite this, only 17 percent reported increasing the use of in-person interviews in response to concerns about AI-related fraud.

Survey respondents noted that industries handling sensitive data, like financial services, healthcare, defense, and infrastructure, are more cautious in AI adoption due to these risks. Customer-facing functions in less regulated sectors may lack the same guardrails, but the customer impact of a breach can be just as severe.

The survey revealed ambiguity in organizations' policies around candidates using AI. Forty-one percent have no official stance, 29 percent encourage ethical use but worry about misuse, and only 26 percent clearly welcome AI use with guidelines.

There's also a human dimension. AI-assisted hiring can erode qualities CX leaders value, such as empathy, judgment, adaptability, and real-time problem-solving. When candidates rely on AI-generated responses during interviews, hiring managers risk optimizing for polish over presence.

## Customer Trust Starts at the Hiring Stage

For customer experience leaders dealing with the growing threat of voice and video AI fraud, collaborating closely with HR departments is key to mitigating the risk of deepfakes infiltrating the hiring process.

Clear guardrails and intentional friction can help flush out fake candidates. Hiring for customer-facing functions should have firm non-negotiables around live, unaided interaction, especially in roles where real-time judgment and empathy are essential.

Interviews should include visible verification steps, such as mandatory cameras, no virtual backgrounds, and spontaneous questions that test the candidate's presence and comprehension in real time, rather than polished responses.

Because resumes are no longer reliable signals of authenticity, i4cp recommends cross-checking identity and work history, exploring platforms that verify user presence and conduct live identification checks. Verification can stop fraud before it reaches customers. Recruiters and hiring managers also need support to overcome the social discomfort of challenging suspicious candidates.

Deepfakes in hiring are no longer a future problem or a niche security issue. They are a present-day operational risk with direct implications for customer experience and brand credibility. At a time when seeing and hearing are no longer believing, hiring has become one of the most vulnerable moments in the CX lifecycle.

AI-powered deepfake candidates are slipping into hiring pipelines, threatening customer trust and CX operations.

Deepfake Job Candidates: The Hidden Threat to Customer Trust You Can't Ignore

## ServiceForge Partners with Ripley PR to Champion Human-First Customer Experience in the Trades

In a significant move for the home service industry, **ServiceForge**, a leading provider of customer service software for home service businesses, has selected **Ripley PR** as its U.S. agency of record. This partnership aims to promote ServiceForge's **"Keep Service Human" ethos**, emphasizing authentic human connections in an era increasingly dominated by AI and automation.

### The Partnership Details

Ripley PR, a global public relations agency specializing in skilled trades, B2B tech, and manufacturing, will lead public relations efforts for ServiceForge. The collaboration focuses on highlighting the importance of **human-first customer experience** in the trades, a sector where personal touch can be a key differentiator.

### What Sets ServiceForge Apart

ServiceForge equips home service contractors with tools like **24/7 answering services, scheduling, and lead qualification** to enhance customer experience. However, its standout feature is the commitment to **"Keep Service Human,"** ensuring customers can connect with live representatives for genuine interactions. In an industry shifting toward AI-powered automation, this focus on **"real people"** is a significant competitive advantage.

### Insights from Leadership

Jane Blanchard, head of brand and marketing for ServiceForge, stated, "We have a unique story to tell, and Ripley PR has the expertise to ensure that story connects with the right audience. We chose Ripley PR due to their **stalwart reputation within the home services space**, their work with software innovators, and their **unparalleled reach within trade media**."

Heather Ripley, founder and CEO of Ripley PR, added, "ServiceForge is an original voice within the trades, and their model answers real consumer demand. The **'Keep Service Human' narrative** is invaluable, and our job is to make sure it's part of the conversation among strategic home service companies."

### About Ripley PR

Founded in 2013, Ripley PR has been recognized as a top PR agency for home services and skilled trades, with accolades from **Newsweek** and **Entrepreneur magazine**. The agency offers expertise in **media relations, brand strategy, crisis communications, and thought leadership**.

### Why This Matters for Customer Service Jobs

This partnership underscores a growing trend in customer service: **balancing technology with human interaction**. For professionals in remote customer service roles, it highlights the value of **authentic connections** and the demand for skills that prioritize customer empathy and engagement.

### Learn More

- To explore ServiceForge's offerings, visit [serviceforge.com](https://www.serviceforge.com).
- For details on Ripley PR, check out [ripleypr.com](https://www.ripleypr.com).

![Ripley PR Logo](https://mma.prnewswire.com/media/2872635/Ripley_PR__Logo.jpg)

ServiceForge selects Ripley PR as U.S. agency of record to champion human-first customer experience in the trades
              
            
            
              
                ServiceForge selects Ripley PR as U.S. agency of record to champion human-first customer experience in the trades
                PR Newswire
                KNOXVILLE, Tenn., Feb. 2, 2026
              
              
New partnership will promote skilled trade software company's "Keep Service Human" ethosKNOXVILLE, Tenn., Feb. 2, 2026 /PRNewswire/ -- Ripley PR, a global public relations agency specializing in skilled trades, B2B tech and manufacturing, has been named the public relations agency of record for ServiceForge, a trusted provider of customer service software for home service businesses.
    
                
                        
                     
                        
                
    
ServiceForge equips home service contractors with a robust set of tools to enhance customer experience, including 24/7 answering services, scheduling and lead qualification. What most distinguishes the company is its commitment to "Keep Service Human," ensuring the end customer has the opportunity for authentic connection with a live representative. In an industry increasingly shifting toward AI-powered automation, ServiceForge's emphasis on "real people" when it comes to customer service is a significant differentiator."We have a unique story to tell, and Ripley PR has the expertise to ensure that story connects with the right audience," said Jane Blanchard, head of brand and marketing for ServiceForge. "We chose Ripley PR due to their stalwart reputation within the home services space, their previous work building brands for software innovators and their unparalleled reach within trade media. They are exactly the partners we need to ensure contractors hear the importance of the human-first customer experience."Founded in 2013, Ripley PR has been widely recognized as a top public relations agency for the home services and skilled trades. The agency has been honored by Newsweek as one of America's Best PR Agencies and by Entrepreneur magazine as a Top Franchise Supplier. The agency's expertise spans media relations, brand strategy, crisis communications and thought leadership."ServiceForge is an original voice within the trades, and their model answers real consumer demand," said Heather Ripley, founder and CEO of Ripley PR. "The 'Keep Service Human' narrative is an invaluable one, and our job is to make sure it's part of the conversation among strategic and forward-thinking home service companies."To learn more about ServiceForge, visit serviceforge.com.To learn more about Ripley PR, visit https://www.ripleypr.com or call (865) 977-1973.About ServiceForgeServiceForge helps home service businesses get found, get booked and get paid with 24/7 human answering, scheduling, lead qualification and payments. By combining smart technology with real human connection, ServiceForge helps service businesses stand out in an increasingly disconnected world, ensuring contractors capture more jobs while delivering exceptional customer service. For more information, visit serviceforge.com.About Ripley PRRipley PR is an elite, global B2B public relations agency specializing in home service and building trades, manufacturing and franchising. The agency has been recognized by the Corporate Livewire Prestige Awards as PR Agency of the Year (2025-2026) and by the Merit Awards as Best Communications/PR Agency (2025). Offering a full range of strategic communication services, including award recognition, crisis management and media relations, Ripley PR uses a blend of strategic business acumen and creative public relations branding to tell compelling stories and deliver measurable results.Ripley PR is also a member of The Worldcom Public Relations Group, the world's leading partnership of independently owned PR agencies whose members provide clients with on-demand access to in-depth communications experts. For more information, visit ripleypr.com or call 865-977-1973.



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