Work management software company Monday.com announced it will lay off about 20% of its workforce, totaling just over 600 employees, as part of a restructuring plan tied to ongoing product and go-to-market strategy changes. According to an SEC filing, the Tel Aviv-based firm is shifting toward a leaner operating model while continuing to invest in its AI-driven growth strategy.
Monday.com Restructuring and AI Strategy Shifts
Co-founder Eran Zinman told employees in a LinkedIn memo that the layoff decision was not made to reduce costs or replace people with artificial intelligence. Instead, Zinman positioned the move as an organizational adaptation to an AI-first vision the company introduced roughly a year ago during a platform-wide rebrand. Monday.com expects to incur between $45 million and $55 million in net restructuring charges, yet the company still projects up to 20% year-over-year revenue growth for 2026, according to corporate disclosures.
Did you know? While Monday.com is shedding roughly 20% of its staff, the company maintains two offices in the United States alongside its Tel Aviv headquarters and anticipates continued double-digit revenue growth through 2026.
Broader Tech Industry Layoffs and Market Reception
U.S. tech companies have slashed nearly 140,000 jobs since the start of the year, according to a Financial Times analysis. Amazon, Oracle, Meta, and Microsoft alone accounted for almost 50,000 of those reductions as these firms funnel hundreds of billions of dollars into AI data center buildouts. Interestingly, the Financial Times also found that companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, signaling skepticism from financial markets.
Headcount Shifting and Emerging AI Roles
Despite widespread reductions, the employment landscape in technology remains mixed. AI-focused companies like Anthropic and OpenAI are hiring rapidly, absorbing talent shed elsewhere in the industry, per the Financial Times. Furthermore, internal headcount is shifting rather than disappearing entirely at several organizations. Meta moved roughly 7,000 employees into new AI-focused roles earlier in the year while laying off 8,000 others, and IBM reported tripling entry-level hiring for AI and hybrid-cloud roles alongside separate workforce reductions.
Frequently Asked Questions
Are tech companies replacing employees directly with AI?
While executives like Monday.com co-founder Eran Zinman state that layoffs are designed to adapt organizations to new operational models rather than directly substitute humans with code, corporate filings across the industry frequently cite AI-driven efficiency gains and capital reallocations as primary catalysts for restructuring.
How many jobs have U.S. tech companies cut this year?
According to an analysis by the Financial Times, U.S. tech companies have cut nearly 140,000 jobs since the start of the year.
How do financial markets react to AI-driven layoffs?
Data from the Financial Times indicates that companies citing AI as a factor in job cuts underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements.
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