Monday.com is the latest tech company to blame AI for layoffs — here are 20 others

2026-07-26 · Source: AI News & Artificial Intelligence | TechCrunch · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Emerging Technologies & Innovation · Depth: Fundamental Awareness, long

Summary

Monday.com, the Tel Aviv-based work management software company, recently announced layoffs of over 600 employees, or 20% of its workforce, citing a "restructuring plan" linked to its "AI-driven growth strategy" and expecting \$45 million to \$55 million in charges. This move positions Monday.com as the latest among over 20 tech companies, including giants like Amazon, Oracle, Meta, and Microsoft, that have collectively slashed nearly 140,000 U.S. tech jobs this year, often attributing cuts to AI integration or strategic shifts towards AI. While some firms like Anthropic and OpenAI are rapidly hiring, and others like Meta and IBM are reallocating staff to AI-focused roles, a Financial Times analysis reveals that companies citing AI for job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, indicating market skepticism regarding these explanations.

Key takeaway

For HR leaders navigating workforce transformations, understand that attributing layoffs solely to AI may face market skepticism, as evidenced by underperforming stocks. Focus on transparently communicating strategic reallocations to AI-focused roles and investing in reskilling initiatives. Your strategy should emphasize adapting skill sets and organizational structures for AI integration, rather than just cost reduction, to maintain talent and investor confidence.

Key insights

Tech companies are citing AI for widespread layoffs, often restructuring workforces while market performance suggests skepticism.

Principles

• AI integration frequently drives workforce restructuring.
• Market sentiment is cautious regarding AI-attributed job cuts.
• AI adoption redefines required organizational skill sets.

In practice

• Reallocate existing employees into AI-focused roles.
• Invest heavily in AI data center infrastructure.
• Simplify organizational structures to enhance agility.

Topics

• AI Workforce Impact
• Tech Layoffs
• Corporate Restructuring
• AI Investment Strategy
• Market Sentiment
• Monday.com

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI News & Artificial Intelligence | TechCrunch.