Key facts
- Monday.com will lay off approximately 20% of its workforce, over 600 employees.
- The company cited its AI-driven growth strategy and a need for a leaner operating model.
- U.S. tech companies have collectively cut nearly 140,000 jobs this year.
- Companies mentioning AI in layoff announcements have underperformed the Nasdaq post-announcement.
- AI-focused companies like OpenAI and Anthropic are actively hiring.
Monday.com announced it will lay off approximately 20% of its workforce, or just over 600 employees, as part of a restructuring plan tied to its AI-driven growth strategy. The company stated the move was not to reduce costs or replace people with AI, but rather to adapt the organization to an AI-first vision.
This decision positions Monday.com among a growing number of tech companies citing artificial intelligence as a factor in job cuts. According to Financial Times analysis, U.S. tech firms have eliminated nearly 140,000 jobs this year, with major players like Amazon, Oracle, Meta, and Microsoft accounting for a significant portion of these reductions as they invest heavily in AI infrastructure.
Interestingly, the FT also found that companies announcing layoffs with AI as a stated factor have underperformed the Nasdaq by nearly 10% in the 30 trading days following their announcements. However, the landscape is not entirely negative, as AI-focused companies such as Anthropic and OpenAI are experiencing rapid hiring, absorbing talent shed elsewhere. Some companies, like Meta, are shifting employees into AI-focused roles even as they conduct layoffs.
Several other tech companies have also announced significant layoffs this year, often linking them to AI investments or transformations. Microsoft cut about 4,800 roles, Oracle reduced its workforce by 21,000 over 12 months, and GitLab laid off 350 workers to fund AI infrastructure. Google has implemented rolling cuts, Intuit plans to eliminate 3,000 jobs, and Meta laid off 8,000 employees while moving 7,000 into AI roles. Cisco is cutting nearly 4,000 jobs, Cloudflare 1,100, and General Motors 500-600 IT roles. Coinbase cut 700 employees to increase AI efficiency, and PayPal plans to cut around 20% of its workforce over the next two to three years, focusing on AI adoption.