Companies are increasingly cutting jobs due to AI advancements, but this decision may incur greater long-term expenses than reskilling employees. Replacing laid-off workers involves significant costs such as recruitment, onboarding, and the loss of institutional knowledge. Studies indicate that rehiring can often exceed the savings from layoffs, and remaining employees may experience decreased productivity. While reskilling also has associated costs, it can be a more financially sound strategy in the long run. Therefore, organizations should carefully compare the financial implications of both cutting and training before making workforce decisions.
https://www.aicerts.ai/blogs/train-or-cut-from-hsbc-to-kroger-ai-layoffs-keep-rising-here-is-what-they-really-cost-compared-with-reskilling/