Monday.com became the latest tech company to cite artificial intelligence as a factor in job cuts, announcing in July 2026 that it would lay off approximately 600 employees — about 20% of its workforce — as part of a restructuring tied to an “AI-driven growth strategy.” The Tel Aviv-based work management software company disclosed the cuts in an SEC filing, projecting $45 million to $55 million in restructuring charges while still forecasting up to 20% year-over-year revenue growth for 2026. Co-founder Eran Zinman told employees the move “was not made to reduce costs or replace people with AI,” framing it instead as an organizational shift toward an AI-first model.
Monday.com joins a growing list of more than 20 major tech companies that have cited AI when announcing significant layoffs in 2026. According to Financial Times analysis, U.S. tech companies have cut nearly 140,000 jobs since the start of the year, with Amazon, Oracle, Meta, and Microsoft alone accounting for close to 50,000 of those eliminations as they redirect hundreds of billions of dollars into AI data center buildouts.
The cuts span the industry broadly. Amazon eliminated 16,000 corporate jobs in January 2026, following 14,000 cuts in late 2025. Oracle disclosed it had reduced its workforce by 21,000 employees over 12 months. Meta laid off roughly 8,000 workers while simultaneously moving 7,000 employees into new AI-focused roles. Block cut nearly half its workforce — 4,000 jobs — with CEO Jack Dorsey writing that AI tools paired with “smaller and flatter teams” are enabling “a new way of working.” Other companies on the list include Cloudflare, Coinbase, GitLab, Snap, Intuit, Cisco, PayPal, Atlassian, IBM, Dell, Salesforce, Google, and General Motors.
The FT analysis also found that companies citing AI as a factor in layoffs have underperformed the Nasdaq by nearly 10% in the 30 trading days following their announcements, suggesting the market may not fully accept the rationale being offered. At the same time, AI-focused firms such as Anthropic and OpenAI are hiring rapidly, and some companies making cuts are also expanding in AI roles — IBM, for instance, said it plans to triple entry-level hiring for AI and hybrid-cloud positions.
Source: TechCrunch