Key Highlights
- Monday.com will cut around 20% of its workforce as part of its AI-first transformation.
- Nearly 140,000 tech jobs have reportedly been eliminated across U.S. technology companies in 2026.
- Microsoft, Amazon, Oracle, Meta, Google, Salesforce and several other firms have linked restructuring to AI investments.
- Companies say AI is reshaping workforce requirements while expanding hiring in AI, cloud and cybersecurity.
- The latest layoffs highlight the industry’s shift toward automation and AI-driven business models.
The rapid adoption of artificial intelligence is continuing to reshape the global technology sector, with Monday.com becoming the latest company to announce major workforce reductions while accelerating investments in AI.
The Israel-based work management software company revealed that it plans to reduce nearly one-fifth of its global workforce as part of a broader business restructuring focused on expanding its AI capabilities. The announcement adds Monday.com to a growing list of technology firms that have cited AI-related transformation while announcing layoffs in 2026.
The latest development comes amid a year in which thousands of employees across the technology industry have lost their jobs as companies reorganize operations, automate workflows, and redirect spending toward AI infrastructure and products.
Monday.com announces workforce restructuring
Monday.com disclosed in a regulatory filing that it will eliminate approximately 20% of its workforce, affecting more than 600 employees.
According to the company, the restructuring is intended to support an ongoing transformation of its product development, marketing operations and go-to-market strategy. The objective, it said, is to build a leaner operating model while continuing investments in its AI-driven growth plans.
The company expects to incur restructuring charges of around $45 million to $55 million, but continues to project revenue growth of up to 20% year over year during 2026.
Co-founder Eran Zinman also addressed employees, saying the layoffs should not be viewed as an attempt to replace workers with artificial intelligence.
Instead, he described the move as part of the company’s long-term transition toward an AI-first organization, a strategy that Monday.com began emphasizing about a year ago when it expanded AI capabilities across its platform.
AI investment is changing how tech companies operate
Artificial intelligence has become one of the biggest areas of investment for global technology companies.
Many firms are spending billions of dollars on AI infrastructure, advanced chips, cloud computing, and large language models. At the same time, several organizations are simplifying management structures, automating repetitive work and shifting employees into AI-focused positions.
While companies insist AI is not always directly replacing employees, executives increasingly acknowledge that automation is changing workforce requirements and the mix of skills businesses need.
Nearly 140,000 tech jobs cut this year
A recent analysis by media reported that nearly 140,000 jobs have been eliminated by U.S. technology companies since the beginning of 2026.
Some of the largest contributors include:
Together, these companies account for almost 50,000 layoffs, while simultaneously investing heavily in AI infrastructure and data centers.
The report also noted that companies linking layoffs to AI have generally underperformed the Nasdaq in the weeks following their announcements, suggesting investors remain cautious about whether AI-driven restructuring alone can justify workforce reductions.
However, the broader AI sector continues to create employment opportunities.
Companies such as OpenAI and Anthropic are rapidly expanding hiring, while established firms including Meta and IBM have shifted employees into new AI-related roles despite reducing headcount elsewhere.
Major tech companies announcing AI-related layoffs in 2026
Microsoft (July 2026)
Microsoft announced another round of workforce reductions in July, cutting around 4,800 positions, representing roughly 2.1% of its global workforce.
Many of the affected employees were part of the Xbox gaming business.
The company also introduced voluntary separation packages while continuing large investments in artificial intelligence. Microsoft stated that the eliminated positions were not being directly replaced by AI, but acknowledged that AI is fundamentally changing how work is performed.
Oracle
Oracle revealed that its workforce had declined by approximately 21,000 employees over the previous 12 months, representing a reduction of around 13%.
In regulatory filings, Oracle said wider adoption of AI technologies across its operations had contributed to workforce reductions and indicated similar changes could continue in the future.
The company has simultaneously expanded investments in cloud infrastructure and AI data centers.
GitLab
Software development platform GitLab reduced its workforce by roughly 350 employees, about 14% of total staff.
Company leadership said the restructuring would allow additional investment in AI infrastructure capable of supporting rapidly increasing demand from AI-powered software development.
GitLab also announced organizational restructuring, management simplification and plans to rebuild parts of its platform to accommodate future AI workloads.
Alphabet-owned Google has continued workforce reductions throughout the year rather than announcing one large layoff.
Reports indicate employees across Google Cloud, cybersecurity and other teams have been affected through restructuring, performance reviews and voluntary separation programs.
At the same time, Google Cloud has continued posting strong revenue growth while the company expands AI services and infrastructure.
Industry estimates suggest Google’s total workforce reductions this year range from roughly 1,500 to more than 3,000 employees, although the company has not confirmed a consolidated figure.
Intuit
Financial software company Intuit announced plans to eliminate around 3,000 positions, representing nearly 17% of its workforce.
According to company leadership, the restructuring is aimed at simplifying operations while reallocating resources toward artificial intelligence initiatives and future product development.
Meta
Facebook parent Meta laid off approximately 8,000 employees during May while moving nearly 7,000 workers into AI-focused positions.
CEO Mark Zuckerberg has repeatedly emphasized that AI will play a central role in the company’s long-term strategy, describing the technology as one of the industry’s most important competitive priorities.
The restructuring reflects Meta’s effort to redirect talent toward AI research, infrastructure and product development.
Cisco
Networking giant Cisco announced nearly 4,000 job cuts, equal to roughly 5% of its workforce.
Executives said the restructuring was designed to better align resources with future growth areas including AI, cybersecurity, silicon and optical networking rather than simply reducing operating costs.
Cloudflare
Cloudflare announced a workforce reduction affecting around 20% of its employees, or approximately 1,100 people, despite reporting one of the strongest financial quarters in its history.
The cloud services company posted quarterly revenue of $639.8 million, marking a 34% year-over-year increase. Company leadership said the restructuring was aimed at streamlining operations, with many of the affected roles belonging to management and corporate support functions rather than customer-facing teams.
General Motors
Automobile manufacturer General Motors (GM) cut between 500 and 600 positions, primarily within its information technology teams in the United States.
While the company cited broader organizational restructuring and changing business requirements, reports indicated that AI-driven operational changes were among the factors influencing the decision.
Even after the layoffs, GM continued recruiting for several technology positions, including jobs related to artificial intelligence, autonomous vehicles and motorsports.
Coinbase
Cryptocurrency exchange Coinbase announced plans to reduce its workforce by about 700 employees, representing nearly 14% of its staff.
The company said it is restructuring operations to improve efficiency while making greater use of AI tools across engineering, product development and business operations.
CEO Brian Armstrong noted that AI has significantly accelerated software development, allowing smaller teams to complete projects that previously required much larger engineering groups.
Coinbase has also simplified its organizational structure to encourage faster decision-making.
PayPal
Digital payments company PayPal revealed plans to reduce around 20% of its workforce over the next two to three years as part of an AI-focused transformation strategy.
The company is creating dedicated AI teams to simplify business processes and expand the use of artificial intelligence across software development, customer support and risk management.
Executives said the restructuring is intended to remove unnecessary organizational layers while improving productivity through automation.
Microsoft’s earlier workforce changes
Before its July announcement, Microsoft had already introduced voluntary separation packages earlier in 2026 as part of broader organizational adjustments.
Company executives have indicated that workforce levels are expected to continue evolving as Microsoft increases investments in AI infrastructure, cloud computing and next-generation software development.
Snap
Social media company Snap laid off roughly 1,000 employees, representing around 16% of its global workforce.
CEO Evan Spiegel said advances in AI are enabling teams to automate repetitive work, increase productivity and accelerate product development.
The company stated that AI tools are already helping improve Snapchat+, advertising systems and engineering operations.
IBM
IBM has continued restructuring parts of its workforce while simultaneously expanding hiring in AI-related fields.
Reports indicate the company has reduced thousands of positions across different business units over the past two years. At the same time, IBM plans to significantly increase hiring for AI and hybrid cloud roles.
The company has also acknowledged replacing certain HR functions with AI-powered systems while maintaining that overall hiring continues in strategic technology areas.
Atlassian
Software company Atlassian reduced approximately 1,600 positions, equal to around 10% of its workforce.
The company said it is rebalancing its business toward enterprise software and artificial intelligence.
Leadership emphasized that AI is not intended to replace employees entirely but acknowledged that the technology is changing the types of skills businesses require.
Dell Technologies
Dell’s global workforce declined by around 10% during fiscal 2026, representing roughly 11,000 jobs.
The company has been expanding its AI server business and expects strong future demand for AI-optimized infrastructure, making artificial intelligence one of its primary investment priorities.
Oracle’s earlier restructuring
Earlier in 2026, Oracle also began reducing its workforce through multiple rounds of layoffs while continuing aggressive investments in AI infrastructure.
The company later confirmed that workforce reductions over a 12-month period had reached approximately 21,000 employees.
Block
Financial technology company Block, led by co-founder Jack Dorsey, reduced its workforce by approximately 4,000 employees.
The company said advances in AI have enabled smaller teams to accomplish more work, leading to flatter organizational structures and changes in staffing requirements.
Leadership suggested that many businesses may eventually adopt similar operating models as AI capabilities continue improving.
Salesforce
Salesforce eliminated fewer than 1,000 positions across several departments, including marketing, product management and analytics.
The company attributed part of the restructuring to efficiency gains achieved through its AI platform, saying AI-powered customer support tools have reduced the need to refill certain engineering and support positions.
Earlier workforce reductions had also affected thousands of customer support roles.
Amazon
Amazon carried out one of the largest workforce reductions of the year, cutting around 16,000 corporate positions after another major round of layoffs in late 2025.
The company has repeatedly stated that generative AI and intelligent software agents will transform how work is completed across the organization.
CEO Andy Jassy previously said widespread adoption of AI would likely reduce the number of employees needed for certain corporate functions while improving overall efficiency.
AI is reshaping hiring as well as layoffs
Although layoffs have dominated headlines throughout 2026, the broader employment picture remains more balanced.
Many technology companies are reducing headcount in traditional business functions while increasing recruitment for AI engineering, machine learning, cloud computing, cybersecurity and data infrastructure roles.
Industry leaders including OpenAI, Anthropic and several established technology firms continue expanding AI-focused teams, indicating that employment opportunities are shifting rather than disappearing entirely.
Experts believe AI is changing the nature of work across the technology sector, with demand increasingly focused on specialized technical skills instead of routine operational roles.
Frequently asked questions (FAQs)
Why is Monday.com laying off employees?
Monday.com says the layoffs are part of a restructuring plan supporting its AI-first strategy, product transformation and a leaner operating model rather than a direct effort to replace employees with AI.
Which tech companies have cited AI in layoffs during 2026?
Companies include Monday.com, Microsoft, Oracle, GitLab, Google, Intuit, Meta, Cisco, Cloudflare, General Motors, Coinbase, PayPal, Snap, IBM, Atlassian, Dell, Block, Salesforce and Amazon.
Are AI companies still hiring?
Yes. While many established firms are restructuring, AI-focused companies such as OpenAI and Anthropic continue expanding their workforces. Several larger technology companies are also hiring for AI-specific positions despite reducing staff in other departments.
Does AI always replace employees?
Not necessarily. Most companies say AI is changing job requirements, organizational structures and investment priorities rather than directly replacing workers. Many are simultaneously creating new AI-focused roles while eliminating others.
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