Monday.com is the latest tech company to blame AI for layoffs — here are 20 others
Monday.com, the Tel Aviv-based work management software company known for its colorful, customizable project-tracking boards, this week became the latest tech company to cite AI
Monday.com, the Tel Aviv-based work management software company known for its colorful, customizable project-tracking boards, this week became the latest tech company to cite AI as a factor in job cuts. On Wednesday, the company said in an SEC filing that it will lay off about 20% of its workforce, or just over 600 employees, as part of a “restructuring plan” tied to its “ongoing transformation of its product, marketing, and go-to-market strategy” in support of “a leaner, more focused operating model” as it continues investing in its “AI-driven growth strategy.” Co-founder Eran Zinman told employees in a LinkedIn memo that the move “was not made to reduce costs or replace people with AI,” positioning it instead as adapting the organization to a new AI-first vision the company laid out roughly a year ago when it rebranded around a platform-wide AI push. Monday.com, which has two offices in the U.S., expects $45 million to $55 million in net restructuring charges but still projects up to 20% year-over-year revenue growth for 2026. So far, according to new Financial Times analysis, U.S. tech companies have slashed nearly 140,000 jobs since the start of this year, with Amazon, Oracle, Meta, and Microsoft alone accounting for almost 50,000 of those cuts as they funnel hundreds of billions of dollars into AI data center buildouts. Interestingly, the FT also 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, suggesting the market doesn’t entirely buy the stories that the companies are telling. Still, the picture isn’t 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. And within some of the very companies making cuts, headcount is shifting rather than disappearing entirely. Meta, for instance, earlier this year moved roughly 7,000 employees into new AI-focused roles even as it laid off 8,000 others, and IBM says it’s tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts. Below is a running look — in reverse chronological order — at 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, per the FT. Separately, it offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. The company said the role eliminations were “not being replaced by AI” but acknowledged “AI is changing how work gets done.” CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and was expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
The BriefWire