Monday.com, the Israeli work management platform famous for its vibrant project boards, has announced a layoff of about 20% of its workforce—more than 600 employees—as part of a restructuring linked to its pivot toward AI-driven growth. In an SEC filing on July 23, 2026, the company framed the cuts as necessary for transforming product, marketing, and go-to-market approaches to adopt a leaner, AI-first operating model. Despite the workforce reduction and expected $45 million to $55 million in net restructuring charges, Monday.com forecasts up to 20% revenue growth for the year, emphasizing that the layoffs align with a strategic AI vision rather than immediate cost-cutting or AI replacing staff.

Monday.com is the latest among over 20 major U.S. tech companies to cite artificial intelligence as a key reason for job cuts seen so far in 2026. Industry giants including Amazon, Oracle, Meta, Microsoft, and Cisco have collectively shed tens of thousands of roles while significantly investing in AI data center expansions. While companies claim workforce transformations stem from AI efficiency gains, a Financial Times analysis found that companies mentioning AI in layoff announcements have generally underperformed the Nasdaq, suggesting skepticism about their narratives. Conversely, AI-focused firms like Anthropic and OpenAI continue aggressive hiring, with some large companies reshaping hiring priorities and redeploying staff into AI-centric roles.

Several recent layoffs highlight how AI is reshaping employment within tech giants. Microsoft cut 4,800 jobs mostly in Xbox just three years after acquiring Activision Blizzard for $75 billion, though it said the reductions weren’t direct replacements by AI but part of broader team optimization amid AI investments. Oracle disclosed reducing its workforce by 21,000 over 12 months, linking some cuts to AI adoption. Meta simultaneously laid off 8,000 employees while shifting 7,000 into AI roles, reflecting internal headcount realignment rather than pure reductions. Other notable companies like Snap, GitLab, Cloudflare, PayPal, and Coinbase have followed suit, emphasizing AI in their reorganizations despite strong revenue or investments.

This wave of AI-related layoffs points to a major industry transition where adopting generative and operational AI technologies is profoundly changing product development and corporate structures. Despite job reductions, many companies express a focus on creating "high-performing, agile teams" to adapt to AI-driven workflows. The evolution also creates rising demand in emergent AI firms and specialized roles, illustrating a workforce in flux rather than pure contraction. Monday.com’s announcement adds to this narrative of AI-enabled transformation across leading tech companies in 2026.