Monday.com Joins List of Tech Giants Reorganizing Under AI Strategy

Monday.com has joined the growing ranks of technology firms restructuring their workforces to accommodate artificial intelligence initiatives. The Tel Aviv-based company confirmed in an SEC filing this week that it will eliminate roughly 600 positions, or 20% of its staff. Management characterized the move as a transformation of its product and go-to-market strategies, emphasizing a leaner approach to support its AI-driven growth targets.

Strategic Pivot vs. Cost Savings

Co-founder Eran Zinman clarified to staff via LinkedIn that the layoffs were not a direct replacement of humans with software, nor a simple cost-cutting exercise. Instead, the company expects to incur restructuring charges between $45 million and $55 million. Despite the upheaval, Monday.com maintains an optimistic financial outlook, projecting a 20% year-over-year revenue increase for 2026. This reorganization follows an AI rebranding effort initiated by the project management platform a year ago.

The Industry-Wide Shift

Data from the Financial Times indicates that U.S. tech companies have collectively shed nearly 140,000 jobs since January 2026. Dominant players including Microsoft, Meta, Amazon, and Oracle account for approximately 50,000 of these departures. While these firms reduce headcount, they are simultaneously directing hundreds of billions into AI data center development. Market performance for these companies has been mixed; those citing AI as a reason for cuts have lagged behind the Nasdaq by nearly 10% in the month following their announcements.

A Rolling Wave of Restructuring

The tech landscape reflects a volatile transition as legacy roles are phased out in favor of specialized AI talent:

• Microsoft: Eliminated 4,800 roles in July 2026, primarily within its Xbox unit, citing a shift in how work is executed despite massive investments in Activision Blizzard.
• Oracle: Disclosed a reduction of 21,000 employees over the last year, explicitly naming AI adoption as a driver for workforce changes.
• GitLab: Cut 14% of its staff in June to fund "agentic workloads" and infrastructure capable of handling 100x growth requirements.
• Google: Conducted rolling layoffs throughout the first half of the year, particularly in its Cloud division, despite achieving record revenues exceeding $20 billion.
• Meta: Balanced the layoff of 8,000 employees with the internal transfer of 7,000 others into new AI-centric positions.
• Intuit and Cisco: Both firms announced thousands of job cuts in May, with leadership stressing the need to realign resources toward silicon, security, and machine learning agility.

While established firms trim their payrolls, AI-native organizations like OpenAI and Anthropic are actively absorbing displaced talent, suggesting a redistribution of human capital rather than a total industry contraction. Even hardware-focused firms like IBM have pledged to triple entry-level hiring for cloud and AI roles while concurrently managing layoffs in other departments.

Source: Tech Crunch