Monday.com the latest tech firm to blame AI for layoffs
Monday.com the latest tech company to cite AI in layoffs will cut about 20% of staff—just over 600 employees—via a restructuring tied to its AI-driven growth strategy. The Tel Aviv work-management firm joins more than 20 major tech employers that have named AI as a factor in 2026 job cuts.
According to TechCrunch’s running list, Monday.com disclosed the plan in an SEC filing this week. The company framed the cuts as part of a leaner operating model while it keeps investing in AI.
Co-founder Eran Zinman told employees the decision “was not made to reduce costs or replace people with AI.” He cast it as adapting to an AI-first vision Monday.com laid out about a year ago. The firm expects $45 million to $55 million in net restructuring charges and still projects up to 20% year-over-year revenue growth for 2026.
Key Takeaways
- Monday.com will lay off about 20% of its workforce, just over 600 employees, citing an AI-driven strategy.
- U.S. tech firms have cut nearly 140,000 jobs since the start of 2026, per Financial Times analysis cited by TechCrunch.
- Firms citing AI in layoff announcements have underperformed the Nasdaq by almost 10% over the following 30 trading days.
- AI-focused companies such as Anthropic and OpenAI are hiring rapidly, while some employers shift staff into AI roles.
Why did Monday.com cut jobs if not to replace people with AI?
Monday.com’s SEC filing links the restructuring to transforming product, marketing, and go-to-market strategy around a leaner model and an “AI-driven growth strategy.” Zinman’s LinkedIn memo separates that vision from cost-cutting or direct AI substitution.
The company has two U.S. offices and remains focused on growth targets even as headcount falls. For more coverage of AI’s workplace impact, see our Future Tech & AI Wonders hub.
Which other tech companies blamed AI for 2026 layoffs?
TechCrunch’s reverse-chronological list includes Microsoft (about 4,800 roles in July), Oracle (21,000 fewer employees over 12 months), GitLab (about 350 workers), Meta (about 8,000 laid off while moving about 7,000 into AI roles), Cisco (nearly 4,000), Cloudflare (about 1,100), Coinbase (about 700), PayPal (around 20% over two to three years), Snap (about 1,000), Atlassian (about 1,600), Dell (roughly 11,000), Block (4,000), Salesforce, and Amazon (16,000 corporate jobs in January 2026).
Amazon CEO Andy Jassy had previously said generative AI and agents should mean fewer people doing some of today’s jobs. Salesforce pointed to Agentforce efficiencies reducing support cases it needs to backfill.
Does citing AI for layoffs convince investors?
Not fully. The Financial Times found firms that name AI as a layoff factor underperformed the Nasdaq by almost 10% in the 30 trading days after announcing. Markets appear skeptical of the narratives companies tell.
The picture is mixed inside the industry. Meta moved thousands into AI-focused roles even while cutting others. IBM says it is tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts. Anthropic and OpenAI are absorbing some displaced talent by hiring rapidly.