Monday.com Blames AI, Cuts a Fifth of Its Staff
What happened
Monday.com, the Tel Aviv-based project-management software maker, filed an SEC notice saying it will lay off about 20% of its workforce — just over 600 employees — as part of a restructuring tied to its 'AI-driven growth strategy.' Co-founder Eran Zinman insists it's not about cutting costs or swapping humans for bots, just 'adapting' to an AI-first vision the company announced a year ago.
Why this matters
Monday.com joins a growing list — Microsoft, Oracle, Amazon, Meta — of companies citing AI as a factor in 2026 layoffs, which now total nearly 140,000 jobs cut in the US alone. The framing has become almost templated: fewer humans, more 'AI-first,' still growing revenue.
The slightly cynical read
FT data shows companies that blame AI for layoffs have actually underperformed the Nasdaq by ~10% in the following month — meaning investors aren't fully buying the 'strategic transformation' story. Sometimes 'AI-first' is just a rebrand for 'cost-cutting, but make it sound futuristic.'
What to watch next
Watch whether Monday.com's projected 20% revenue growth for 2026 actually materializes post-cuts, and whether other SaaS companies follow with their own 'AI pivot' layoff announcements before earnings season.