Monday.com says AI shift is part of plan to cut 20% of staff

In short: More big tech companies in 2026 are linking layoffs to AI changes, and Monday.com is the latest.

What's going on

Monday.com, a work management software company based in Tel Aviv, said it will lay off about 20% of its workforce, which is just over 600 people. The company disclosed the plan in a filing with the US Securities and Exchange Commission, which is a government agency that oversees public company disclosures.

In the filing, Monday.com described the move as a restructuring tied to changing its product, marketing, and sales approach, while it keeps investing in an AI-driven growth strategy. In a memo posted on LinkedIn, co-founder Eran Zinman told employees the layoffs were not made to cut costs or to replace people with AI, but to reshape the company around an “AI-first” direction.

This fits a broader pattern across the tech industry in 2026. TechCrunch cited Financial Times analysis that US tech companies have cut nearly 140,000 jobs so far this year, with Amazon, Oracle, Meta, and Microsoft making up almost 50,000 of those cuts. Several companies have said AI is affecting how work gets done, even when they also say roles are not being directly replaced by AI.

What to watch

One key question is whether these layoffs continue as companies spend heavily on AI infrastructure, like data centers (large buildings full of computers that run online services, similar to a power plant but for computing). Another is how quickly displaced workers are absorbed by companies that are hiring in AI, such as OpenAI and Anthropic, and whether more employers shift people into new AI-focused roles instead of eliminating jobs outright.

Source: TechCrunch AI