AI Restructuring Wave Reshapes Tech Industry as Major Players Cut Jobs
Monday.com joins a growing list of tech companies attributing workforce reductions to AI-driven transformation, announcing a 20% staff cut affecting roughly 600 employees. The Tel Aviv-based work management platform frames the layoffs not as cost-saving measures or direct AI replacement, but as part of an organizational shift toward an AI-first vision adopted during its rebranding a year ago. Despite $45 million to $55 million in restructuring charges, the company projects up to 20% year-over-year revenue growth for 2026.
The broader picture reveals U.S. tech companies have eliminated nearly 140,000 jobs since the start of 2026, according to a new Financial Times analysis. Amazon, Oracle, Meta, and Microsoft account for almost 50,000 of those cuts alone, redirecting hundreds of billions of dollars toward AI data center buildouts. However, the market remains skeptical of AI-justified layoffs, with companies making such announcements underperforming the Nasdaq by nearly 10% in the 30 trading days following their disclosures.
The talent landscape is not uniformly shrinking but rather shifting within and across companies. AI-focused firms like Anthropic and OpenAI are hiring aggressively, absorbing skilled workers shed elsewhere. Even companies conducting layoffs are simultaneously reallocating headcount, as Meta demonstrated by moving approximately 7,000 employees into new AI-focused roles while cutting 8,000 others. IBM is following a similar pattern, tripling entry-level hiring for AI and hybrid-cloud positions alongside its recent reductions.