Monday.com Joins Wave of Tech Firms Linking Layoffs to AI

While co-founder Eran Zinman maintains that the restructuring is intended to adapt the organization to a new strategic vision rather than simply replacing humans with machines, the move mirrors a broader industry trend. Financial Times analysis indicates that U.S. tech companies have slashed nearly 140,000 jobs so far this year, with major players like Microsoft, Meta, and Oracle frequently pointing to AI integration as the catalyst for streamlining their organizations.

Despite the scale of these departures, the labor market remains polarized. Companies such as Anthropic and OpenAI are aggressively hiring, while giants like Meta and IBM have demonstrated that headcount often shifts toward specialized AI roles rather than vanishing entirely. Markets, however, remain skeptical of the narrative; data suggests that firms citing AI as a justification for layoffs have underperformed the Nasdaq by nearly 10% in the month following their announcements. For Monday.com, the focus remains on long-term growth, with the firm projecting up to 20% year-over-year revenue increases by 2026 even as it absorbs up to $55 million in restructuring charges.