Monday.com joins tech firms citing AI for layoffs — here are 20 more.
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Monday.com Announces Layoffs Amid AI Transition
This week, Monday.com, the Tel Aviv-based work management software firm famous for its vibrant and customizable project-tracking boards, announced significant job cuts, attributing the decision to its ongoing transformation towards an AI-driven growth strategy. In an SEC filing on Wednesday, the company stated it plans to reduce its workforce by about 20%, affecting more than 600 employees as part of a restructuring initiative aimed at streamlining operations and enhancing its product and marketing strategies.
A Move Towards an AI-First Vision
Eran Zinman, co-founder of Monday.com, addressed employees in a LinkedIn memo, clarifying that the layoffs are not aimed at cutting costs or substituting employees with AI. Rather, he emphasized that this restructuring is a necessary step towards realizing an AI-first vision the company adopted roughly a year ago. Despite expecting restructuring charges between $45 million and $55 million, Monday.com forecasts a year-over-year revenue growth of up to 20% by 2026.
The Tech Industry’s Job Market Shifts
According to a recent analysis by the Financial Times (FT), nearly 140,000 jobs have been eliminated in the U.S. tech sector since the beginning of 2026. High-profile companies such as Amazon, Oracle, Meta, and Microsoft are responsible for nearly 50,000 of those cuts, as they heavily invest in AI data center expansions. Interestingly, firms citing AI as a reason for layoffs have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, suggesting skepticism from the market about the rationale provided for these cuts.
Opportunities Amidst the Cuts
Despite the gloomy landscape, the FT highlighted that AI-focused companies like Anthropic and OpenAI are actively hiring, taking in talent that has been released from other firms. Additionally, some companies that announced layoffs are reallocating talent instead of reducing headcount entirely. For example, Meta has shifted about 7,000 employees into new AI-focused roles, while IBM is ramping up entry-level roles in AI and hybrid-cloud technologies.
Major Companies Experiencing Layoffs
Several prominent tech firms have announced significant layoffs in 2026, often citing AI as a contributing factor:
Microsoft
On July 9, Microsoft disclosed a reduction of around 4,800 roles, approximately 2.1% of its total workforce. This move primarily affected its Xbox gaming division. Although the company noted that these roles would not be filled by AI, it did acknowledge that AI is altering workflows. The CFO indicated that headcount would continue to decline as the focus shifts towards building teams that can operate with greater agility amid rising investments in AI.
Oracle
Oracle announced a workforce reduction of 21,000 employees (13% of its total) in June 2026, attributing part of this decline to the adoption of AI technologies in its operations. The company indicated that this trend may persist as they continue to streamline their workforce.
GitLab
On June 3, GitLab laid off approximately 350 employees, or 14% of its workforce, to allocate resources for AI infrastructure enhancements. The CEO noted the need to rebuild core infrastructure to meet what he described as “100x growth requirements,” as the company also exited 22 countries and flattened its management structure.
Google’s Ongoing Cuts
Google has quietly been reducing staff in its Cloud division, even as Cloud revenue surged 63% to surpass $20 billion. Estimates suggest cuts of over 1,500 engineers, mainly via rolling reviews and voluntary separations.
Meta
Around May 20-21, Meta laid off about 8,000 employees while simultaneously moving 7,000 into new AI-focused roles. Despite the necessity of these cuts, many employees expressed dissatisfaction with their new positions.
PayPal
On May 5, PayPal disclosed plans to eliminate over 4,500 jobs, constituting about 20% of its workforce, to streamline operations and implement AI technologies across various processes.
Other Noteworthy Layoffs
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Snap: On April 16, Snap cut roughly 1,000 full-time roles, or 16% of its workforce, citing rapid advancements in AI as a key factor.
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IBM: Estimates suggest that IBM has eliminated between 3,000 and 9,000 positions in the U.S. as part of a comprehensive restructuring, while simultaneously planning to triple its entry-level hiring for AI roles.
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Atlassian: On March 11, the company cut about 1,600 jobs to refocus on AI initiatives, showing a stock increase in reaction to the news.
Conclusion
While the tech industry faces significant adjustments with many companies citing AI as a pivotal factor for layoffs, opportunities still exist. Companies that embrace the AI transition are not only reshaping their workforce but also reimagining roles for the future. Despite the cuts, some firms are actively hiring and shifting existing employees to new roles, indicating a complex, evolving landscape driven by technological advancement. As the industry navigates these changes, it remains evident that AI is both a catalyst for innovation and a disruptor of traditional employment models.
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