Monday.com joins wave of tech layoffs tied to AI transformation

Monday.com, the project-tracking software company, announced this week that it will eliminate roughly 20% of its workforce—just over 600 employees—as part of a broader strategic shift toward AI-driven products and a more streamlined operation. The Tel Aviv-based firm disclosed the restructuring in an SEC filing, citing its "transformation of its product, marketing, and go-to-market strategy" centered on AI capabilities. The company still projects 20% year-over-year revenue growth for 2026 and expects restructuring costs between $45 million and $55 million.

The broader AI-driven layoff trend#

Monday.com is far from alone. Across the U.S. tech sector, companies have shed roughly 140,000 jobs since the beginning of 2026, with Amazon, Oracle, Meta, and Microsoft accounting for nearly half of those cuts. Most of these firms are redirecting billions toward AI data center infrastructure and integrating AI-powered automation into their operations. From Microsoft's 4,800 Xbox-related cuts in July to Amazon's 16,000 corporate job elimination in January, the narrative has remained consistent: AI is transforming how work gets done, requiring different skill mixes and flatter organizational structures.

What the data shows#

Despite widespread assurances that AI won't simply displace workers, market skepticism is evident. Recent Financial Times analysis found that companies citing AI as a factor in job cuts have underperformed the Nasdaq by nearly 10% in the 30 trading days after their announcements, suggesting investors aren't convinced by the companies' framing.

However, the picture is more nuanced. AI-focused startups like Anthropic and OpenAI are hiring rapidly, absorbing talent shed by larger firms. Meanwhile, some companies undergoing cuts are simultaneously shifting headcount into new AI roles—Meta, for instance, moved 7,000 workers into AI positions while laying off 8,000 others, and IBM says it's tripling entry-level hires for AI and hybrid-cloud jobs.

Notable cuts across the industry#

Recent moves: Cloudflare cut 20% of its workforce despite record quarterly revenue, with CEO Matthew Prince noting the layoffs targeted "measurers" (middle management and overhead). Intuit eliminated 17% of staff to refocus on AI, while Cisco cut 5% despite beating profit expectations. PayPal plans to reduce headcount by 20% over two to three years—over 4,500 jobs—centered on aggressive AI adoption.