Monday.com Joins the Ranks of Tech Giants Citing AI for Job Cuts

Monday.com, a leading work management software company, has become the latest tech firm to attribute its layoffs to the increasing adoption of artificial intelligence (AI). In a Securities and Exchange Commission (SEC) filing, the company announced plans to lay off around 20% of its workforce, approximately 600 employees, as part of a restructuring plan tied to its ongoing transformation of its product, marketing, and go-to-market strategy.

The company’s co-founder, Eran Zinman, explained in a LinkedIn memo that the move was not aimed at reducing costs or replacing people with AI, but rather at adapting the organization to a new AI-first vision that the company outlined roughly a year ago. Monday.com is investing in its AI-driven growth strategy and expects $45 million to $55 million in net restructuring charges. Despite this, the company still projects up to 20% year-over-year revenue growth for 2026.

This development comes as the Financial Times (FT) analyzed the trend of US tech companies slashing nearly 140,000 jobs since the start of the year. Amazon, Oracle, Meta, and Microsoft alone account for almost 50,000 of those cuts, as they invest hundreds of billions of dollars in AI data center buildouts. Interestingly, the FT found that companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements.

However, the picture is not uniformly bleak. The FT notes that AI-focused companies like Anthropic and OpenAI are hiring rapidly, absorbing some of the talent shed elsewhere in the industry. Within some of the companies making cuts, headcount is shifting rather than disappearing entirely. Meta, for instance, moved roughly 7,000 employees into new AI-focused roles even as it laid off 8,000 others. IBM is tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts.

A List of Tech Companies that Have Announced Significant Layoffs with AI as a Stated Factor

Below is a list of the bigger tech companies that have announced significant layoffs this year with AI as a stated factor:

• Microsoft — July 9, 2026: Microsoft cut about 4,800 roles, or 2.1% of its global workforce, most of them in its Xbox gaming unit, resetting the business only three years after acquiring Activision Blizzard for $75 billion.
• Oracle — June 22, 2026: Oracle disclosed that it had reduced its workforce by 21,000 employees over the past 12 months, a decline of 13%, citing AI as a factor.
• GitLab — June 3, 2026: GitLab laid off roughly 350 workers, about 14% of its staff, to fund AI infrastructure investment and handle surging traffic from AI workflows.
• Google — Ongoing through May: Alphabet’s Google has quietly cut employees across its Cloud division, including its Threat Intelligence Group and Mandiant-linked cybersecurity staff, even as Cloud revenue grew 63% to exceed $20 billion for the first time.
• Intuit — May 20, 2026: Intuit announced plans to eliminate roughly 3,000 jobs — about 17% of its total workforce — in a restructuring centered on reducing complexity and reallocating resources toward AI.
• Meta — May 20-21, 2026: Meta laid off about 8,000 employees, roughly 10% of its workforce, while moving about 7,000 employees into new AI-focused roles.
• Cisco — May 14, 2026: Cisco announced it’s cutting nearly 4,000 jobs, about 5% of its workforce, despite reporting better-than-expected profit and revenue.
• Cloudflare — May 7-8, 2026: Cloudflare cut about 20% of its workforce (1,100 people), reporting quarterly revenue of $639.8 million, up 34% year-over-year.
• General Motors — May 12, 2026: GM eliminated 500 to 600 jobs, largely in IT roles in Austin, Texas, and Warren, Michigan, saying it was reevaluating its workforce needs amid uncertain market conditions.
• Coinbase — May 5, 2026: The crypto exchange said it was cutting about 700 employees, or 14% of its staff, as part of a restructuring aimed at addressing market volatility and increasing AI efficiency.
• PayPal — May 5, 2026: PayPal announced plans to cut around 20% of its workforce over the next two to three years — north of 4,500 jobs — as part of a turnaround strategy centered on AI adoption and organizational simplification.

The trend of tech companies citing AI as a factor in job cuts raises questions about the future of work in the industry. While some companies are investing heavily in AI and hiring rapidly, others are making significant layoffs, citing the need for a leaner and more focused operating model.

As the tech industry continues to evolve and adapt to the increasing adoption of AI, it will be interesting to see how this trend plays out in the coming months and years.