Monday.com lays off 600+ employees, joins 20+ tech firms blaming AI

Monday.com, the Tel Aviv-based work management platform, this week announced layoffs of roughly 20% of its staff (over 600 employees) as part of a restructuring plan tied to its 'AI-driven growth strategy.' In an SEC filing, the company said the cuts support a 'leaner, more focused operating model' as it continues investing in AI. Co-founder Eran Zinman told employees via LinkedIn that the decision 'was not made to reduce costs or replace people with AI,' but rather to align the organization with the AI-first vision it adopted a year ago. The move is expected to cost $45–$55 million in restructuring charges, though Monday.com still projects up to 20% year-over-year revenue growth for 2026.

The layoff is part of a wider pattern. According to the Financial Times, U.S. tech companies have slashed nearly 140,000 jobs this year, with Microsoft, Oracle, Meta, and Google alone cutting 50,000. Many explicitly cite AI as a factor—Oracle cut 21,000 jobs over 12 months (13% of its workforce) due to AI automation, GitLab laid off 14% of staff to fund AI infrastructure, and Google has quietly reduced Cloud and cybersecurity roles. Interestingly, the FT found that companies blaming AI for layoffs underperform the Nasdaq by nearly 10% in the 30 days following announcements, indicating market doubt. Meanwhile, AI-focused firms like Anthropic and OpenAI are actively hiring, and some companies are shifting headcount—Meta moved 7,000 employees into AI roles even as it laid off 8,000 others.