Monday.com Cites AI as Driver in Plan to Cut About 20% of Workforce
Monday.com cites AI in 20% workforce reduction as part of a broader AI-driven restructuring, joining a string of tech companies reshaping staff amid rapid AI investment.
Monday.com to cut about 20% of staff in AI-linked restructuring
Monday.com, the Tel Aviv-based work management software firm, said this week it will eliminate roughly 20% of its workforce — just over 600 roles — as part of a restructuring tied to its shift toward an AI-first product strategy. The company disclosed the move in an SEC filing and described the changes as part of a transformation of product, marketing and go-to-market operations to support accelerated AI investment.
Co-founder Eran Zinman informed employees in an internal memo that the reorganization is designed to align the company with a leaner operating model focused on AI-driven growth. Monday.com flagged expected one-time restructuring charges of $45 million to $55 million while still projecting significant year-over-year revenue growth into 2026.
Wider tech trend shows AI cited across major layoffs this year
The Monday.com announcement arrives amid a wave of AI-linked job cuts across the technology sector in 2026. Financial sector and industry analyses show major firms have disclosed broad reductions this year, with tens of thousands of roles eliminated across companies that are simultaneously directing substantial capital into AI infrastructure and services.
Public filings and company statements in recent months have frequently referenced AI as a factor in workforce decisions, even as some of the same organizations are expanding hiring in AI-specific divisions. Investors have reacted variably to these explanations, with several companies’ stocks underperforming benchmark indexes in the short window after their layoff disclosures.
Notable corporate reductions and AI-related shifts
Several high-profile employers have made sizable cuts while framing decisions around AI-driven efficiency or rebalancing. Examples include Microsoft reducing roughly 4,800 roles in July, Oracle disclosing a 21,000-headcount decline over 12 months, Meta’s roughly 8,000 layoffs coupled with internal redeployments, and Amazon’s January reduction of 16,000 corporate positions. Other firms reporting significant adjustments include Cisco, Cloudflare, Intuit, Snap, and Coinbase.
Companies reported varying rationales: some cited structural simplification and the reallocation of resources toward AI and cloud infrastructure, while others described productivity changes enabled by AI tooling. In several cases, firms reported simultaneous hiring in AI and cloud-focused roles even as broader teams were thinned.
Where headcount is shifting rather than disappearing
Despite headline cuts, portions of the industry are absorbing displaced talent or repurposing roles into AI-focused teams. AI-native companies and labs have been recruiting aggressively, creating demand for skilled engineers and researchers. At the same time, larger incumbents have moved staff into AI units, and some firms report boosting entry-level hiring geared to AI and hybrid-cloud work.
Executives across affected companies emphasize redeployment toward AI priorities: internal transfers, new AI product groups, and hiring pipelines aimed at machine learning and infrastructure roles are common themes. This reallocation underscores a transition in the mix of skills employers say they need to build and scale AI products.
Financial impact and investor response to AI-linked cuts
Companies have disclosed restructuring charges, severance costs and projected savings tied to workforce changes, with firms like Monday.com estimating tens of millions in one-time charges. Investors appear to weigh these expenses against anticipated long-term gains from AI investments, and market responses have been mixed.
Analysis of stock performance after layoff announcements suggests some skepticism among investors about whether the moves will translate into lasting value. Short-term underperformance of certain firms has been reported, even as others see share gains driven by clearer AI roadmaps or revenue growth tied to cloud and AI services.
Operational and ethical considerations for companies and workers
Executives and labor advocates are raising questions about how AI will reshape job design, managerial layers and internal controls. Companies must balance technological efficiency with workforce transitions, retraining programs and transparent communication to limit disruption.
For employees, the shift often means evaluating options in reskilling for AI roles, seeking opportunities at AI-specialized firms, or considering transitions to sectors less immediately affected by AI automation. Some organizations have paired layoffs with commitments to upskilling, while others have focused on severance and outplacement support.
The wave of AI-linked workforce changes reflects a broader industry pivot toward generative AI, agentic systems and AI-optimized infrastructure, prompting companies of all sizes to reassess organizational design and talent needs.
Overall, Monday.com’s announcement underscores how AI strategy is increasingly shaping staffing decisions across the technology sector, even as the market tests whether these moves deliver the productivity and growth companies expect. The coming quarters will determine how many displaced workers find new AI-focused roles and whether redirected investments translate into the projected revenue gains.
