Monday.com Joins a Growing List of Tech Companies Citing AI in Layoffs

Monday.com, the Nasdaq-listed work management software company, disclosed in a Securities and Exchange Commission filing on July 22 that it will eliminate about 620 positions, roughly one in five roles at the company. Co-founder and co-CEO Eran Zinman called it a “very difficult decision” in a LinkedIn post to employees, and said the cuts were not made to reduce costs or replace people with AI. Instead, he framed the move as recognition that “the organization we built for our previous chapter is not the organization that fits the new AI era.”

The restructuring will cost Monday.com between $45 million and $55 million in net charges, the company said in its filing, consisting of $30 million to $35 million in severance and related employee costs and a similar $30 million to $35 million for the impairment of office space, partly offset by about $15 million in non-cash share-based compensation credits. The company said the majority of the charges will be recognized as the plan is substantially completed in the second half of 2026. Monday.com still expects 19 percent to 20 percent year-over-year revenue growth in 2026, and it said it plans to keep hiring in “key strategic areas” throughout the year even as the reductions proceed.

A Flatter Company Built Around AI Agents

Zinman described the goal as a flatter organization with fewer management layers and smaller, more autonomous teams, paired with a new go-to-market model. As CIO reported, he told employees the company is shifting to “doing the work with AI and not just managing it,” building toward workspaces where “people and AI agents [work] together in one workspace.” Customers rolling out AI now expect deeper implementation support, he said, so Monday.com plans to increase its on-site presence with customers, create new roles, and adapt existing ones to match.

Zinman also pointed to internal friction as a reason for the redesign, telling staff that projects which should have taken a few days had instead dragged on for months because of “multiple meetings and endless friction.” He said the goal of the new structure is for people to work better, not harder, and to let them make decisions and move fast. A company spokesperson declined to comment further on the reductions.

Monday.com Is Not Alone

Monday.com’s announcement folds into what TechCrunch has been tracking as a running list of major tech employers citing AI as a factor in 2026 layoffs. Microsoft cut about 4,800 roles in July, most of them in its Xbox gaming unit, saying the eliminations were “not being replaced by AI” while acknowledging that “AI is changing how work gets done.” Oracle disclosed in June that it had reduced headcount by 21,000 people over the prior year, a 13 percent decline, and said in a regulatory filing that “the adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce.” GitLab cut roughly 350 workers, about 14 percent of its staff, to redirect spending toward AI infrastructure. CEO Bill Staples said agentic workloads are “pushing competitors to the brink” and described the effort as a “generational rebuild” of the company’s core infrastructure to support what he called 100x growth requirements. Intuit announced plans in May to eliminate about 3,000 jobs, close to 17 percent of its workforce, in a restructuring centered on reducing complexity.

According to the Financial Times analysis cited by TechCrunch, United States tech companies have cut nearly 140,000 jobs since the start of 2026, with Amazon, Oracle, Meta, and Microsoft alone accounting for almost 50,000 of those reductions as they pour money into AI data center buildouts. The picture is not entirely one-sided: Meta cut 8,000 jobs earlier this year while shifting roughly 7,000 employees into new AI-focused roles, and IBM says it is tripling entry-level hiring for AI and hybrid-cloud positions even as it makes other cuts elsewhere.

Analysts and the Market Are Not Fully Convinced

Reaction from industry analysts was mixed. Sanchit Vir Gogia, chief analyst at Greyhound Research, told CIO the filing amounted to “a deliberate reset, disclosed with its price attached,” arguing that companies in Monday.com’s position “do not restructure because they must. They restructure because they have decided to become something else.” Melody Brue, an analyst at Moor Insights & Strategy, was more cautious, noting that organizational redesigns built around AI can look confident to markets while still proving “devastating” to the people affected. “There are often hidden internal bruises that can surface long after layoffs,” she said.

The market itself appears skeptical of the framing. TechCrunch reported that the Financial Times analysis found companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10 percent in the 30 trading days following their announcements, a gap suggesting investors are not entirely buying the narrative that AI-driven reinvention, rather than plain cost-cutting, is what is driving the decisions. Whether Monday.com’s bet on flatter teams and AI agents pays off should become clearer once the restructuring plan is substantially complete.