Monday.com joins 2026's AI-linked layoff wave

Monday.com has become the latest major technology company to cite AI while announcing job cuts. The Tel Aviv-based work-management software maker said in an SEC filing Wednesday that it will eliminate about 20% of its workforce, or just over 600 employees, through a restructuring tied to its product, marketing, and go-to-market strategy.

The company said the changes support a “leaner, more focused operating model” and continued investment in its “AI-driven growth strategy.” Co-founder Eran Zinman told employees the cuts “was not made to reduce costs or replace people with AI,” but reflected a new AI-first direction introduced about a year ago. Monday.com expects $45 million to $55 million in net restructuring charges while still forecasting up to 20% year-over-year revenue growth in 2026.

A new Financial Times analysis found that U.S. technology companies have cut nearly 140,000 jobs since the start of 2026. Amazon, Oracle, Meta, and Microsoft account for almost 50,000 of those reductions as they invest hundreds of billions of dollars in AI data centers.

The FT also found that companies citing AI in layoff announcements underperformed the Nasdaq by almost 10% during the 30 trading days afterward. At the same time, AI companies such as Anthropic and OpenAI are hiring rapidly, while some companies are shifting employees into new AI roles rather than eliminating their positions entirely. Meta moved roughly 7,000 employees into AI-focused jobs while laying off 8,000, and IBM is tripling entry-level hiring for AI and hybrid-cloud roles.

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Tech layoffs linked to AI in 2026

The following list is arranged in reverse chronological order, based on announcements and disclosures cited by TechCrunch.

• Microsoft — July 9: Cut about 4,800 roles, or 2.1% of its global workforce, mainly in Xbox, three years after acquiring Activision Blizzard for $75 billion. Microsoft said the roles were “not being replaced by AI,” while acknowledging that AI is changing how work gets done.

• Oracle — June 22: Reported that its workforce had fallen by 21,000 employees, or 13%, over the previous 12 months. Its filing said AI adoption “have resulted, and may continue to result, in reductions to our workforce.”

• GitLab — June 3: Eliminated roughly 350 jobs, or 14% of staff, to fund AI infrastructure and handle traffic from AI workflows. The company expects $30 million to $35 million in restructuring costs.

• Google — through May: Made rolling cuts across Cloud, including cybersecurity teams, while Cloud revenue rose 63% to more than $20 billion and its backlog reached over $460 billion. Outside estimates put 2026 reductions at 1,500 to more than 3,000 engineers.

• Intuit — May 20: Planned to eliminate roughly 3,000 jobs, or 17% of its workforce, while reallocating resources toward AI.

• Meta — May 20–21: Laid off about 8,000 employees, roughly 10% of its workforce, while moving about 7,000 into AI-focused roles. CEO Mark Zuckerberg said the cuts were necessary because “success isn’t a given” in AI.

• Cisco — May 14: Announced nearly 4,000 cuts, about 5% of its workforce, to realign resources around silicon, optics, security, and AI.

• General Motors — May 12: Eliminated 500 to 600 jobs, mainly in IT. A source told CNBC that AI played a role, although it was not the only reason; GM still had about 80 open IT positions.

• Cloudflare — May 7–8: Cut about 20% of its workforce, or 1,100 people, despite record quarterly revenue of $639.8 million, up 34% year over year.

• Coinbase and PayPal — May 5: Coinbase cut about 700 employees, or 14% of staff, while PayPal planned to eliminate more than 4,500 jobs—about 20% of its workforce—over two to three years as part of AI-focused restructuring.

• Snap — April 16: Cut roughly 16% of its global workforce, about 1,000 employees, and closed more than 300 open roles, citing AI advances that reduce repetitive work.

• IBM — throughout 2026: Estimates range from 3,000 to 9,000 U.S. positions eliminated, with roughly 200 HR roles replaced by AI agents. IBM plans to triple U.S. entry-level hiring for AI and hybrid-cloud jobs.

• Atlassian — March 11: Cut about 1,600 jobs, or 10% of its workforce, to rebalance toward AI and enterprise sales.

• Dell — disclosed in March: Its fiscal 2026 workforce fell about 10%, or roughly 11,000 jobs, with $569 million spent on severance. The company projected that AI-optimized server revenue could double in fiscal 2027.

• Oracle — March 5–31: Began communicating thousands of cuts even as quarterly net income rose 27% to $3.7 billion and remaining performance obligations increased 325% to $553 billion.

• Block — February 26–27: Cut 4,000 jobs, nearly half its workforce, reducing headcount to under 6,000. Jack Dorsey said smaller, flatter teams using intelligence tools were changing how companies operate.

• Salesforce — February 10: Cut fewer than 1,000 employees across several divisions, following an earlier reduction of about 4,000 customer-support roles. The company said its Agentforce AI reduced support-case volume and eliminated the need to backfill some engineering roles.

• Amazon — January 28: Cut 16,000 corporate jobs, following 14,000 reductions in October 2025. CEO Andy Jassy previously said broader use of generative AI and agents would mean fewer people perform some existing jobs.

“Engineers use AI to ship in days what used to take a team weeks.”