Monday.com Announces 20% Workforce Reduction Amid Broader AI-Linked Tech Layoffs

On July 25, 2026, Monday.com announced plans to lay off approximately 20% of its workforce—just over 600 employees. The company expects $45 million to $55 million in net restructuring charges but projects up to 20% year-over-year revenue growth for 2026. Co-founder Eran Zinman stated the layoffs were "not made to reduce costs or replace people with AI" but rather adapting to an AI-first vision.

This announcement comes as part of a broader trend in the technology sector, where major companies are increasingly citing artificial intelligence as a factor in their workforce reductions. The following digest examines what happened, why it matters, and what to watch as the industry navigates this transformation.

What Happened

Monday.com's decision marks another significant chapter in the 2026 tech layoff wave. The company plans to cut roughly 600 employees across its operations while maintaining strong revenue growth projections. This move reflects a strategic pivot toward an AI-first vision, according to co-founder Eran Zinman.

The broader context reveals a stark picture of the current tech landscape: U.S. companies have slashed nearly 140,000 jobs since the start of 2026 alone. Amazon, Oracle, Meta, and Microsoft alone account for almost 50,000 of those cuts, representing some of the largest workforce reductions in recent memory.

The layoffs span multiple major technology companies, each with their own AI-related justifications:

• Meta moved roughly 7,000 employees into new AI-focused roles earlier in 2026 while laying off 8,000 others during the same period—a net shift toward AI work.

• Microsoft cut about 4,800 roles on July 9, 2026, representing 2.1% of its global workforce, with most cuts concentrated in the Xbox gaming unit. The company had previously acquired Activision Blizzard for $75 billion three years ago.

• Oracle reduced its workforce by 21,000 employees over the past 12 months, representing a 13% decline in headcount as of June 22, 2026.

• GitLab laid off roughly 350 workers on June 3, 2026—about 14% of its staff—while exiting 22 countries. Despite these cuts, the company's first-quarter revenue reached $264 million, up 23% year-over-year, with expected restructuring costs of $30 to $35 million.

• Google (Alphabet) saw significant changes in its management structure, cutting more than a third of managers overseeing small teams (35% fewer managers). Outside estimates put 2026 total cuts at between 1,500 and 3,000+ engineers, even as cloud revenue grew 63% to exceed $20 billion for the first time.

• Intuit announced plans on May 20, 2026, to eliminate roughly 3,000 jobs—about 17% of its total workforce.

• IBM is tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts, signaling a strategic shift toward these technologies.

Why It Matters

The pattern emerging from these announcements raises important questions about the role of AI in modern business strategy. Companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, suggesting the market doesn't entirely buy the narrative that companies are telling about AI-driven layoffs.

Notably, AI-focused companies like Anthropic and OpenAI are hiring rapidly, absorbing talent shed elsewhere. This suggests a consolidation of resources toward specific AI applications rather than broad workforce reductions across the sector.

The financial implications are significant: - Monday.com expects $45M-$55M in restructuring charges - GitLab expects $30M-$35M in restructuring costs - Total U.S. tech layoffs since start of 2026: 140,000 jobs

The market's skepticism about AI-driven layoff narratives is evident in the underperformance relative to the Nasdaq index. Investors appear to be questioning whether companies are genuinely using AI to enhance productivity or simply using AI as a convenient explanation for cost-cutting measures.

What to Watch

Several key developments will shape the future of this trend:

1. Market Performance: Continued monitoring of whether AI-citing companies can close the performance gap with the broader Nasdaq index.

2. Talent Migration: Tracking how companies like Anthropic and OpenAI continue to absorb talent from traditional tech firms, potentially reshaping the competitive landscape for AI development.

3. Revenue Growth vs. Workforce Reductions: Companies like Monday.com projecting 20% revenue growth while cutting 20% of their workforce will be closely watched to see if this model proves sustainable.

4. Strategic AI Investments: Whether companies are genuinely investing in AI capabilities or using it as a cover for broader restructuring efforts.

5. Global Impact: The international dimensions of these layoffs, particularly GitLab's exit from 22 countries and the global nature of cuts at Microsoft and Oracle.

By the numbers

• Monday.com layoff percentage: 20%
• Monday.com employees affected: 600
• Monday.com restructuring charges: $45M - $55M
• Monday.com projected revenue growth: 20% YoY
• Total U.S. tech layoffs since start of 2026: 140,000
• Amazon/Oracle/Meta/Microsoft combined cuts: 50,000
• Nasdaq underperformance (AI-citing companies): 10%
• Meta AI-focused hires: 7,000
• Meta layoffs: 8,000
• Microsoft roles cut (July 9, 2026): 4,800
• Microsoft workforce percentage cut: 2.1%
• Activision Blizzard acquisition: $75B
• Oracle employees reduced (past 12 months): 21,000
• Oracle headcount decline: 13%
• GitLab workers laid off: 350
• GitLab staff percentage cut: 14%
• GitLab Q1 revenue: $264M
• GitLab YoY revenue growth: 23%
• GitLab restructuring costs: $30M - $35M
• GitLab countries exiting: 22
• Google Cloud revenue: $20B+ (first time exceeding)
• Google Cloud revenue growth: 63%
• Google backlog: $460B+
• Google managers cut: >1/3 (35%)
• Google estimated engineers cut (2026): 1,500 - 3,000+
• Intuit jobs to eliminate: 3,000
• Intuit workforce percentage cut: 17%

By the numbers

Source snapshot

Source: TechCrunch — https://techcrunch.com/2026/07/25/the-running-list-major-tech-layoffs-in-2026-where-employers-cited-ai/