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Key Takeaways

Layoffs may reduce costs quickly, but companies that simply rehire into the same org chart risk recreating the inefficiencies that created the crisis in the first place.

Rebuilding successfully requires real-time workforce data and managers equipped to make better hiring, compensation, promotion and team-design decisions.

AI-related layoffs tend to generate headlines, and they’re rarely flattering.Just ask Amazon, which drew fire for eliminating thousands of corporate positions while doubling down on generative AI investments. Or Klarna, which was skewered for firing 700 customer support agents, only to hire them back when AI proved unready to fill the void.Behind the headlines, though, the picture is more complicated.