Monday.com layoffs tied to AI strategy put tech job cuts in focus

Monday.com layoffs AI concerns are back in view after the work management software company said it plans to cut about 20% of its workforce, or just over 600 employees. For investors, the move adds another example of a profitable growth story reshaping its cost base while spending on artificial intelligence.

In an SEC filing Wednesday, Monday.com described the cuts as part of a restructuring plan tied to changes in its product, marketing and go-to-market strategy. Restructuring charges are costs companies book when they reorganize, often including severance and related expenses. Monday.com said it expects $45 million to $55 million in net charges from the plan.

The Tel Aviv-based company said the reorganization supports a more focused operating model as it keeps investing in an AI-driven growth strategy. Co-founder Eran Zinman told employees in a LinkedIn memo that the decision was not about cutting costs or replacing workers with AI, but about adapting the company to an AI-first direction outlined roughly a year earlier.

Monday.com still expects revenue to grow as much as 20% year over year in 2026, according to the filing. That mix, job cuts alongside projected growth, is becoming familiar across tech as companies try to fund AI products and infrastructure without letting headcount expand at the same pace.

Why is Monday.com cutting jobs after citing AI?

Monday.com says it is changing how the company is organized so its teams match its AI-focused product and sales strategy. In plain terms, AI can change which roles a company needs, how many people it assigns to a workflow and where management wants to spend next.

The broader backdrop is larger than one software company. A Financial Times analysis found that U.S. tech companies have cut nearly 140,000 jobs since the start of 2026. The FT said Amazon, Oracle, Meta and Microsoft together accounted for almost 50,000 of those reductions while large tech companies committed heavy spending to AI data center buildouts.

The market has not automatically rewarded companies for linking layoffs to AI. The FT found that companies citing AI as a factor in job cuts trailed the Nasdaq by almost 10% in the 30 trading days after their announcements. That does not prove AI-related cuts caused the underperformance, but it shows investors have treated some of these announcements with caution.

Which other tech companies have cited AI in 2026 cuts?

Several major employers have connected layoffs, buyouts or workforce reductions to AI investment, AI efficiency or changes in the skills they need, according to company filings, executive comments and reports cited by TechCrunch.

• Microsoft cut about 4,800 roles in July, most in Xbox, while saying the eliminated roles were not being replaced by AI. The company also acknowledged that AI is changing how work gets done.
• Oracle disclosed that its workforce fell by 21,000 employees over 12 months and said in an annual filing that AI adoption had led, and could continue to lead, to workforce reductions.
• GitLab cut roughly 350 workers, about 14% of staff, as it redirected spending toward AI infrastructure and agentic workloads.
• Intuit announced plans to eliminate roughly 3,000 jobs, or about 17% of its workforce, in a restructuring focused on AI and simplification.
• Meta laid off about 8,000 employees while moving about 7,000 workers into AI-focused roles, according to TechCrunch.
• Cisco, Cloudflare, Coinbase, PayPal, Snap, Atlassian, Block, Salesforce, Amazon, Dell, IBM, Google and General Motors also announced or carried out cuts where AI was cited as a factor by the company, executives or reporting cited by TechCrunch.

The shift is not limited to job losses. The Financial Times reported that AI-focused companies such as Anthropic and OpenAI are hiring quickly, while IBM has said it is tripling entry-level hiring for AI and hybrid-cloud roles. For workers and investors, the AI boom is creating a split screen: fewer roles in some functions, more hiring in others and a tougher market test for companies claiming efficiency gains.

This story draws on original reporting from TechCrunch.