Monday.com has become the latest technology company to cite artificial intelligence as a factor behind job cuts, announcing plans to lay off around 600 employees, roughly 20% of its workforce, as part of a restructuring tied to its "AI-driven growth strategy." The Tel Aviv-based project management software firm said the changes were not intended to cut costs or replace staff with AI, but to align the organisation with an AI-first vision set out around a year ago, even as it still expects revenue growth of up to 20% this year. The announcement adds to a growing pattern across the tech sector, where AI is increasingly invoked as a justification for workforce reductions.

According to Financial Times analysis cited in the article, US tech firms have cut nearly 140,000 jobs so far in 2026, with Amazon, Oracle, Meta and Microsoft alone accounting for almost 50,000 of them, as they pour vast sums into AI data centre infrastructure. Notably, companies blaming AI for layoffs have underperformed the Nasdaq by almost 10% in the following 30 trading days, suggesting investors are sceptical of the narrative. The picture is not entirely negative, however: AI-focused firms such as Anthropic and OpenAI are hiring rapidly, and some companies are reallocating rather than eliminating roles, as seen at Meta and IBM. Monday.com expects restructuring charges of $45–55 million, and the article catalogues at least 20 other major tech firms, including Microsoft, Oracle and GitLab, that have made similar AI-linked cuts in 2026.