Monday.com cites AI in 20% workforce reduction, joining 20+ tech firms with AI-linked layoffs in 2026

Monday.com, a work management software company, disclosed in an SEC filing that it will lay off 600 employees, representing 20% of its workforce, as part of a restructuring plan tied to its AI-driven growth strategy. The company projected $45–55 million in net restructuring charges but still expects up to 20% year-over-year revenue growth for 2026.

The company's co-founder, Eran Zinman, stated in a LinkedIn memo that the layoffs were not intended to reduce costs or replace people with AI, but rather to adapt the organization to a new AI-first vision outlined roughly a year ago during a platform-wide AI push.

According to a Financial Times analysis, U.S. tech companies have cut nearly 140,000 jobs in 2026, with Amazon, Oracle, Meta, and Microsoft accounting for nearly 50,000 of those cuts. Companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements.

Other major tech companies that have cited AI as a factor in layoffs this year include Microsoft, which cut 4,800 roles (2.1% of its global workforce) in July 2026, and Oracle, which disclosed a 13% workforce reduction (21,000 employees) over the past 12 months due to AI adoption and deployment.

GitLab laid off 350 workers (14% of its staff) in June 2026 to fund AI infrastructure investment and handle surging traffic from AI workflows, while Google has conducted rolling performance reviews and structural reorganizations resulting in an estimated 1,500–3,000+ engineer cuts in 2026.

Meta laid off 8,000 employees (10% of its workforce) in May 2026 while moving 7,000 employees into new AI-focused roles, and Cisco cut nearly 4,000 jobs (5% of its workforce) in May 2026, citing realignment around AI among other priorities.