Monday.com, the Tel Aviv-based work management software company, said Wednesday that it will lay off approximately 600 employees, representing about 20% of its workforce, as part of a restructuring plan tied to what it described as an “AI-driven growth strategy.”

The move places Monday.com among a growing group of major technology companies that have publicly connected workforce reductions to the adoption of artificial intelligence or to organizational changes intended to support AI-focused operations. The trend has accelerated during 2026 as large technology firms continue to invest heavily in AI infrastructure, products and internal tools.

Monday.com’s restructuring plan

In an SEC filing, Monday.com said the job cuts are part of a “restructuring plan” linked to the company’s “ongoing transformation of its product, marketing, and go-to-market strategy.” The company said the plan is intended to support “a leaner, more focused operating model.”

Co-founder Eran Zinman told employees in a LinkedIn memo that the decision “was not made to reduce costs or replace people with AI.” He said the restructuring was instead intended to adjust the organization to an AI-first vision that Monday.com outlined roughly a year earlier, when it rebranded around a platform-wide AI initiative.

Because Monday.com sells work management software, its restructuring is also being viewed within a broader software-sector shift in which companies are embedding AI into products while changing how they organize sales, marketing and product teams around those tools.

Monday.com expects to record $45 million to $55 million in net restructuring charges. Despite the layoffs, the company still projects up to 20% year-over-year revenue growth for 2026.

Nearly 140,000 U.S. tech jobs cut in 2026

According to a recent Financial Times analysis, U.S. technology companies have eliminated nearly 140,000 jobs since the start of 2026. Amazon, Oracle, Meta and Microsoft together account for almost 50,000 of those reductions.

The cuts have occurred as technology companies direct hundreds of billions of dollars toward AI data center buildouts. The Financial Times also found that companies citing AI as a factor in job cuts underperformed the Nasdaq by almost 10% in the 30 trading days after their announcements, indicating investor skepticism toward some AI-driven restructuring narratives.

The employment picture is not uniform across the sector. The Financial Times noted that AI-focused companies such as Anthropic and OpenAI are hiring rapidly and absorbing some talent from other parts of the technology industry. In some companies that are cutting jobs, headcount is also shifting rather than disappearing entirely.

Meta, for example, moved roughly 7,000 employees into new AI-focused roles earlier this year while laying off 8,000 others. IBM has said it is tripling entry-level hiring for AI and hybrid-cloud roles while also carrying out recent cuts.

Major technology companies citing AI in 2026 layoffs

The following larger technology companies have announced significant layoffs in 2026 with AI cited as a factor, listed in reverse chronological order:

Microsoft — July 9, 2026: Microsoft cut about 4,800 roles, mostly in its Xbox gaming unit. CFO Amy Hood said total headcount had declined year-over-year and was expected to keep declining as the company focuses on “building high-performing teams” amid rising AI investment.

Oracle — June 22, 2026: Oracle disclosed that it had reduced its workforce by 21,000 employees over 12 months, a 13% decline. The company said “the adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce.”

GitLab — June 3, 2026: GitLab laid off roughly 350 workers, or 14% of staff, to fund AI infrastructure investment. CEO Bill Staples said agentic workloads are “pushing competitors to the brink.”

Google — ongoing through 2026: Google quietly cut employees across its Cloud division, including staff in the Threat Intelligence Group and Mandiant-linked cybersecurity teams. Over the past year, Google has cut more than one-third of managers overseeing small teams.

Intuit — May 20, 2026: Intuit eliminated roughly 3,000 jobs, or 17% of its workforce, in a restructuring focused on reducing complexity and reallocating resources toward AI.

Meta — May 20-21, 2026: Meta laid off about 8,000 employees, or 10% of its workforce, while moving about 7,000 employees into new AI-focused roles. CEO Mark Zuckerberg told staff the cuts were necessary because “success isn’t a given” in AI.

Cisco — May 14, 2026: Cisco moved to cut nearly 4,000 jobs, equal to about 5% of its workforce. CFO Mark Patterson said the restructuring was “really not a savings-driven restructure… this is more realigning resources around silicon, optics, security and AI.”

General Motors — May 12, 2026: General Motors eliminated 500 to 600 IT jobs. A person familiar with the cuts told CNBC that AI played a role but was not the only reason.

Cloudflare — May 7-8, 2026: Cloudflare cut about 20% of its workforce, or 1,100 people. CEO Matthew Prince wrote that “the vast majority of those we laid off were measurers,” referring to roles in middle management, finance, legal and internal auditing.

Coinbase — May 5, 2026: Coinbase cut about 700 employees, or 14% of staff. CEO Brian Armstrong wrote that AI had dramatically changed the pace of work, saying “engineers use AI to ship in days what used to take a team weeks.”

PayPal — May 5, 2026: PayPal announced plans to cut around 20% of its workforce over two to three years, amounting to more than 4,500 jobs. CEO Enrique Lores said the company would “aggressively adopt AI” in its development processes.

Snap — April 16, 2026: Snap cut roughly 16% of its global workforce, or about 1,000 employees. CEO Evan Spiegel cited AI advancements as a key driver, saying “rapid advancements in artificial intelligence enable our teams to reduce repetitive work.”

IBM — rolling through 2026: Estimates of IBM’s U.S. job cuts range from 3,000 to 9,000 positions, bringing the company’s cumulative total since September 2024 above 15,000. Bloomberg reported that IBM plans to triple U.S. entry-level hiring for AI and hybrid-cloud roles.

Atlassian — March 11, 2026: Atlassian cut about 1,600 jobs, equal to 10% of its workforce. CEO Mike Cannon-Brookes said: “It would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas.”

Dell — January 30, disclosed in March 2026: Dell’s total workforce fell about 10% in fiscal 2026, equivalent to roughly 11,000 jobs. The reductions came as Dell projected that its AI-optimized server revenue could double in fiscal 2027.

Block — February 26-27, 2026: Block cut 4,000 jobs, nearly half of its workforce. Jack Dorsey wrote: “We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working.”

Salesforce — February 10, 2026: Salesforce laid off fewer than 1,000 employees across marketing, product management and its Agentforce AI unit. The company told Fortune that “because of the benefits and efficiencies of Agentforce, we’ve seen the number of support cases we handle decline.”

Amazon — January 28, 2026: Amazon cut 16,000 corporate jobs after eliminating 14,000 roles in October 2025. CEO Andy Jassy had said in June 2025 that “as we roll out more generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today.”

Impact on tech employment

The pattern of companies citing AI in connection with layoffs while continuing to invest heavily in AI infrastructure has raised questions about corporate accountability and the direction of technology employment. The Financial Times finding that companies making such announcements underperformed the Nasdaq by nearly 10% over the following month points to skepticism among investors about whether AI-driven efficiency claims justify large-scale job reductions.

At the same time, hiring by AI-focused companies such as Anthropic and OpenAI, along with role shifts at companies such as Meta and IBM, shows that parts of the technology labor market are being reallocated toward AI-related work. That transition is creating disruption for workers in traditional technology roles as some positions are redefined, reduced or moved into AI-focused teams.

Monday.com’s announcement adds another example to a year in which technology companies have combined headcount reductions with expanded AI investment. With nearly 140,000 jobs eliminated across the U.S. tech sector in 2026, companies continue to frame many reductions as strategic realignments rather than direct replacement of workers by AI. For Monday.com, the next measurable markers are whether it can absorb the expected restructuring charges while pursuing its AI-first product and go-to-market changes and maintaining its stated 2026 growth outlook.

Original source: https://bitcoinworld.co.in/monday-com-ai-layoffs-tech-companies-2026/