Work management software company Monday.com has announced substantial job cuts, becoming the latest in a string of technology firms to attribute workforce reductions, in part, to advancements in artificial intelligence. The Tel Aviv-based firm confirmed it will dismiss approximately 20% of its staff, impacting over 600 employees, as part of a broader restructuring strategy. This move aligns with a growing pattern observed across the technology sector, where AI is increasingly cited as a catalyst for organisational change and workforce adjustments.
The Shifting Landscape of AI and Employment
Monday.com stated the restructuring is tied to an "ongoing transformation" of its product and market strategies, aiming for a "leaner, more focused operating model" driven by an "AI-driven growth strategy." While co-founder Eran Zinman assured employees that the decision was not solely to reduce costs or replace personnel with AI, the company's rebranding approximately one year prior centred on a platform-wide artificial intelligence initiative. Despite the job cuts, Monday.com projects a revenue increase of up to 20% year-over-year for 2026, anticipating net restructuring charges between $45 million and $55 million.
The trend of tech companies citing AI in layoffs is not isolated. Financial Times analysis indicates that U.S. tech companies have eliminated nearly 140,000 jobs since the beginning of the year. Major players such as Amazon, Oracle, Meta, and Microsoft collectively account for almost 50,000 of these reductions, concurrent with substantial investments in AI data centres.
Interestingly, the same Financial Times analysis noted that companies publicly attributing job cuts to AI have underperformed the Nasdaq index by nearly 10% in the 30 trading days following their announcements, suggesting a degree of market skepticism regarding the stated reasons for these workforce adjustments.
Companies Announce AI-Influenced Workforce Reductions
Despite the overall trend, some AI-focused companies, including Anthropic and OpenAI, are actively hiring, absorbing talent elsewhere in the industry. Within larger corporations, workforce shifts are also evident, with roles being reallocated rather than entirely eliminated. Meta, for example, transitioned approximately 7,000 employees into new AI-focused positions while simultaneously laying off 8,000 others. Similarly, IBM has indicated a tripling of entry-level hiring for AI and hybrid-cloud roles alongside recent redundancies.
- Microsoft: Approximately 4,800 roles eliminated in July 2026, primarily within its Xbox division, as the company focuses on agile teams amid rising AI investment.
- Oracle: Disclosed a reduction of 21,000 employees over the past 12 months, with AI adoption cited as a contributing factor in its annual financial filing.
- GitLab: Laid off around 350 employees, about 14% of its staff, to fund AI infrastructure investment and manage increased AI workflow traffic.
- Google: Implemented ongoing cuts across its Cloud division, including cybersecurity staff, through performance reviews and voluntary buyouts, with estimates suggesting 1,500 to 3,000+ engineers affected in 2026.
- Intuit: Announced plans to eliminate roughly 3,000 jobs, approximately 17% of its workforce, to reduce complexity and reallocate resources towards AI.
- Meta: Laid off approximately 8,000 employees, or about 10% of its workforce, while reassigning around 7,000 staff to new AI-focused roles.
- Cisco: Announced cuts impacting nearly 4,000 jobs, about 5% of its workforce, to realign resources around key areas including AI.
