Monday.com Cuts Workforce by 20% Focusing on AI

Monday.com and AI-Related Layoffs

Israeli company Monday.com, specializing in project management software, has recently decided to reduce its workforce by 20%, which represents just over 600 employees. This reduction is part of a restructuring plan aimed at supporting a leaner and more focused operational model. The company continues to invest in a growth strategy centered around artificial intelligence (AI). According to co-founder Eran Zinman, this decision was not motivated by a desire to cut costs or replace employees with machines. On the contrary, it is about adapting the organization to a new AI-focused vision, a vision that was introduced about a year ago during a strategic repositioning of the platform. This vision includes a continuous transformation of the product, marketing, and go-to-market strategy.

Monday.com, which has two offices in the United States, expects to incur net restructuring charges between $45 and $55 million. Despite these measures, the company anticipates revenue growth of up to 20% year-over-year by 2026.

Context of Layoffs in the Tech Sector

A recent analysis by the Financial Times reveals that American tech companies have cut nearly 140,000 jobs since the beginning of the year. Among the most affected companies are Amazon, Oracle, Meta, and Microsoft, which alone account for nearly 50,000 job cuts. However, these companies continue to invest heavily in AI-related data centers, with investments amounting to hundreds of billions of dollars.

The Financial Times also noted that companies justifying layoffs by AI have underperformed the Nasdaq by nearly 10% in the 30 trading days following their announcements. This suggests that the market remains skeptical about companies' narratives regarding the impact of AI on their layoff decisions.

However, not everything is bleak in the sector. AI-focused companies like Anthropic and OpenAI are actively hiring, absorbing some of the talent released by other companies. Additionally, some companies that are laying off employees are redirecting their workforce rather than drastically reducing it. For example, Meta has shifted about 7,000 employees into new AI-focused roles while laying off 8,000 others. Meanwhile, IBM has announced its intention to triple its hiring for entry-level positions related to AI and hybrid cloud.

List of Companies Announcing AI-Related Layoffs

Here is an overview of major tech companies that have announced significant layoffs this year, citing AI as a determining factor:

• Microsoft — July 9, 2026: Reduction of approximately 4,800 positions, or 2.1% of its global workforce, primarily in its Xbox gaming unit.

• Oracle — June 22, 2026: Reduction of 21,000 employees over the past 12 months, representing a 13% decrease.

• GitLab — June 3, 2026: Layoff of approximately 350 workers, or 14% of its staff, to fund investments in AI infrastructure.

• Google — ongoing until May: Discreet employee reductions in its Cloud division, without announcing a total number.

• Intuit — May 20, 2026: Announcement of the elimination of approximately 3,000 jobs, or 17% of its total workforce.

• Meta — May 20-21, 2026: Layoff of approximately 8,000 employees, or 10% of its workforce, while shifting 7,000 to new AI-focused roles.

• Cisco — May 14, 2026: Announcement of the elimination of nearly 4,000 jobs, or 5% of its workforce.

• Cloudflare — May 7-8, 2026: Layoff of approximately 20% of its staff, or 1,100 people.

• General Motors — May 12, 2026: Elimination of 500 to 600 jobs, primarily in IT roles.

• Coinbase — May 5, 2026: Announcement of the elimination of approximately 700 employees, or 14% of its workforce.

• PayPal — May 5, 2026: Announcement of a reduction of approximately 20% of its workforce over the next two to three years.

• Snap — April 16, 2026: Layoff of approximately 16% of its global workforce, or 1,000 employees.

• IBM — ongoing until 2026: Estimates of 3,000 to 9,000 positions eliminated in the United States.

• Atlassian — March 11, 2026: Layoff of approximately 1,600 jobs, or 10% of its workforce.

This list highlights the growing impact of AI on the labor market in the tech sector, with companies adapting to a new economic reality.