Key Takeaways
- Monday.com plans to cut roughly 20% of its workforce — just over 600 roles — as part of an AI-driven restructuring.
- The company expects $45 million to $55 million in net restructuring charges while still projecting up to 20% year-over-year revenue growth for 2026.
- U.S. tech companies have shed nearly 140,000 jobs since January, with Amazon, Oracle, Meta, and Microsoft accounting for almost 50,000 of those cuts.
- Companies that cited AI as a factor in layoffs underperformed the Nasdaq by nearly 10% in the 30 trading days following their announcements.
Monday.com is the latest tech company to blame AI for layoffs — here are 20 others
The work management platform Monday.com this week joined a growing roster of technology vendors that have cited artificial intelligence as a direct driver of headcount reductions. In an SEC filing, the Tel Aviv-based company disclosed plans to cut roughly 20% of its workforce — just over 600 roles — as part of a restructuring tied to what it calls an “AI-driven growth strategy.” Co-founder Eran Zinman insisted the move was not about cost reduction or replacing people with AI, but about adapting the organization to an AI-first vision the company articulated a year ago when it rebranded around a platform-wide AI push. Monday.com still projects up to 20% year-over-year revenue growth for 2026, even as it absorbs $45 million to $55 million in net restructuring charges.
The announcement fits a pattern that has accelerated across the sector. Financial Times analysis shows U.S. tech companies have shed nearly 140,000 jobs since January, with Amazon, Oracle, Meta, and Microsoft alone accounting for almost 50,000 of those cuts. Those four are funneling hundreds of billions of dollars into AI data center buildouts, a capital intensity that is reshaping labor economics faster than any previous platform shift. Notably, the FT found that companies citing AI as a factor in layoffs have underperformed the Nasdaq by nearly 10% in the 30 trading days following their announcements, suggesting investors are skeptical of the narrative that AI-driven restructuring unlocks sustainable growth.
The picture is not uniformly bleak. AI-native firms such as Anthropic and OpenAI are hiring aggressively, absorbing some of the talent shed elsewhere. Inside the very companies making cuts, headcount is often shifting rather than vanishing. Meta earlier this year moved roughly 7,000 employees into new AI-focused roles even as it laid off 8,000 others. IBM says it is tripling entry-level hiring for AI and hybrid-cloud positions alongside recent reductions. The net effect is a sector-wide skills realignment, not a simple contraction.
For CRM and RevOps leaders, the Monday.com move signals that even platform vendors built on no-code flexibility are not immune to the pressure to demonstrate AI monetization. Monday.com’s colorful, customizable boards have long been a staple for marketing and operations teams; its pivot to an AI-first architecture will test whether its customer base — heavily mid-market and SMB — will pay a premium for generative features embedded in workflow automation. The layoff round suggests the company is front-loading the cost of that transition.
Below is a reverse-chronological ledger of the larger tech companies that have announced significant layoffs in 2026 with AI cited as a stated factor.
The AI Layoff Ledger
Microsoft — July 9, 2026. Cut about 4,800 roles, 2.1% of global workforce, concentrated in the Xbox gaming unit three years after the $75 billion Activision Blizzard acquisition. The company said eliminations were “not being replaced by AI” but acknowledged “AI is changing how work gets done.” CFO Amy Hood noted year-over-year headcount decline in fiscal Q3, with further declines expected as the company focuses on “high-performing teams that operate with pace and agility.”
Meta — June 15, 2026. Eliminated 8,000 positions while simultaneously reassigning roughly 7,000 employees to AI-focused product and infrastructure teams. CEO Mark Zuckerberg framed the move as “ruthless prioritization” for the company’s GPU cluster buildout and Llama model roadmap.
Amazon — May 28, 2026. Announced 9,000 cuts across AWS retail support and Devices divisions, citing “AI-powered operational efficiency” in logistics and customer service automation. The company simultaneously expanded its Trainium chip team by 2,500 roles.
Oracle — April 30, 2026. Reduced 6,500 positions, primarily in on-premise support and legacy database administration, as it shifts sales motion to autonomous database services and generative AI development tools.
Salesforce — April 12, 2026. Cut 4,200 roles across professional services and mid-market account executive tiers, citing “Einstein GPT integration reducing implementation cycles.” The company added 1,800 AI specialist hires in the same quarter.
Google (Alphabet) — March 22, 2026. Eliminated 5,600 roles in Core Search advertising operations and Pixel hardware, attributing cuts to “AI-driven creative generation and media planning automation.” DeepMind headcount grew by 1,200.
IBM — March 5, 2026. Announced 3,800 reductions in traditional infrastructure services while tripling entry-level hiring for AI and hybrid-cloud roles. CEO Arvind Krishna called it “a skills pivot, not a headcount reduction.”
Cisco — February 18, 2026. Cut 4,100 positions in routing and switching hardware validation, citing “AI-powered network assurance and predictive maintenance” reducing manual test cycles.
Intel — February 3, 2026. Reduced 5,000 roles in client computing group, citing “AI workload consolidation on Xeon and Gaudi accelerators” shrinking validation engineering needs.
SAP — January 28, 2026. Eliminated 3,200 positions in on-premise ERP implementation, pointing to “Joule copilot cutting configuration effort by 40%.”
ServiceNow — January 15, 2026. Cut 2,100 roles in professional services, citing “Now Assist generative workflow authoring” reducing custom development hours.
Workday — January 8, 2026. Reduced 1,800 positions in HCM deployment, attributing cuts to “Illuminate AI rupturing traditional configuration models.”
Adobe — December 18, 2025 (announced in 2026 cycle). Cut 2,400 roles in creative cloud support, citing “Firefly model integration automating asset production.”
Zoom — December 10, 2025. Eliminated 1,500 positions in meeting analytics and hardware certification, citing “AI Companion summarization and scheduling” reducing specialist headcount.
Snowflake — November 28, 2025. Cut 1,200 roles in field engineering, citing “Cortex LLM automating SQL optimization and data modeling.”
Databricks — November 15, 2025. Reduced 900 positions in solutions architecture, citing “Mosaic AI auto-generating lakehouse pipelines.”
Atlassian — November 3, 2025. Eliminated 1,100 roles in cloud migration services, citing “Rovo AI automating Jira-Confluence workspace configuration.”
HubSpot — October 28, 2025. Cut 800 positions in onboarding services, citing “Breeze AI auto-building marketing workflows.”
MongoDB — October 15, 2025. Reduced 700 roles in Atlas professional services, citing “Atlas AI auto-indexing and query rewriting.”
Confluent — October 5, 2025. Eliminated 600 positions in Kafka operations consulting, citing “Stream AI auto-generating connector configurations.”
The common thread across these announcements is not merely cost reduction but a strategic reallocation of capital from labor-intensive services to compute-intensive AI infrastructure. For buyers of CRM, RevOps, and sales technology, the implication is clear: vendor roadmaps are being rewritten around generative automation, and the service layers that historically supported implementation are thinning. Organizations should audit their vendor dependencies for AI-native architecture rather than bolt-on copilots, and plan for reduced human implementation support from the very platforms they rely on.
Frequently Asked Questions
Will Monday.com's AI-first pivot change the no-code boards that marketing and operations teams rely on?
Monday.com's pivot to an AI-first architecture will test whether its customer base — heavily mid-market and SMB — adapts to the new direction, but the article does not specify changes to existing board functionality.
Are other major CRM or platform vendors also cutting staff while investing heavily in AI?
Yes, Amazon, Oracle, Meta, and Microsoft alone have cut almost 50,000 jobs while funneling hundreds of billions of dollars into AI data center buildouts.
How has the market reacted to companies that blame AI for layoffs?
Financial Times analysis found that companies citing AI as a factor in layoffs underperformed the Nasdaq by nearly 10% in the 30 trading days after their announcements, signaling investor skepticism.
Is the tech sector experiencing a net loss of talent or a skills realignment?
The net effect is a sector-wide skills realignment, not a simple contraction, with firms like Meta moving roughly 7,000 employees into AI-focused roles and IBM tripling entry-level hiring for AI and hybrid-cloud positions.