This week, Monday.com, a work management software firm based in Tel Aviv, announced significant job reductions, with approximately 20% of its workforce, over 600 positions, set to be eliminated as part of a restructuring plan related to its transformation in product, marketing, and operational strategies, particularly emphasizing an AI-driven growth agenda. The company made this announcement through a filing with the SEC.
Co-founder Eran Zinman reassured staff in a LinkedIn message that these layoffs were not aimed at cutting costs or replacing staff with AI. Instead, he emphasized that the actions were about transitioning the company to align with an AI-centric vision established about a year ago. Despite forecasting restructuring charges between $45 million and $55 million, Monday.com anticipates a year-over-year revenue increase of up to 20% by 2026.
According to a recent analysis, American technology firms have eliminated nearly 140,000 jobs in the year’s first half, with major players like Amazon, Oracle, Meta, and Microsoft contributing approximately 50,000 of those layoffs while investing heavily in AI infrastructure development. Interestingly, the same analysis revealed that companies that point to AI as a reason for job cuts have generally underperformed in the market, lagging almost 10% behind the Nasdaq in the month following their announcements, indicating skepticism about their narratives.
Despite these trends, there is a continued demand for talent in AI-focused companies like Anthropic and OpenAI, which are actively hiring and absorbing some of the talent lost in the industry. Within some organizations making cuts, the focus is on shifting roles rather than outright reductions. For instance, Meta recently transitioned about 7,000 employees into new AI roles, while IBM doubled down on entry-level hiring for AI and hybrid cloud positions even as it undertook layoffs.
Here’s a chronological overview of notable tech companies that announced layoffs this year, with AI considerations noted.
Microsoft — July 9, 2026. Microsoft reduced its workforce by about 4,800 roles, around 2.1%, primarily within its Xbox division. They also initiated voluntary buyout programs. The company stated that these eliminations were not directly substitutable with AI roles but acknowledged AI’s influence on work processes. CFO Amy Hood noted a declining workforce in their fiscal report, attributing this to a focus on building efficient teams amidst increased investment in AI.
Oracle — June 22, 2026. In late June, Oracle revealed a workforce reduction of 21,000 employees, or 13% of its total staff. They attributed the cuts partially to AI technology implementation affecting their workforce.
GitLab — June 3, 2026. GitLab announced around 350 layoffs, approximating 14% of its staff, to fund AI infrastructure and meet the heightened demands of AI workflows. CEO Bill Staples indicated that their core infrastructure rebuild aims to prepare for significant growth. The company anticipated restructuring costs of $30 to $35 million.
Google — ongoing through May. Google has made layoffs in its Cloud division, including cybersecurity roles, even amid booming revenue. They have not disclosed an overall number of layoffs but estimates suggest cuts could amount to several thousand engineers.
Intuit — May 20, 2026. Intuit plans to cut about 3,000 roles, around 17% of its workforce, to streamline operations and prioritize AI development.
Meta — May 20-21, 2026. Meta’s layoffs totaled about 8,000 employees, roughly 10% of its workforce, while also repositioning about 7,000 into AI-centric roles. CEO Mark Zuckerberg indicated that these cuts were strategic, given the uncertainty of success in AI endeavors.
Cisco — May 14, 2026. Cisco announced nearly 4,000 job cuts, attributing them not to cost-saving measures but to a realignment of resources in focus areas like AI.
Cloudflare — May 7-8, 2026. Cloudflare reported a reduction of about 20% of its workforce (1,100 employees), despite impressive quarterly growth, focusing its strategy on efficiency.
General Motors — May 12, 2026. GM eliminated 500 to 600 jobs while indicating that AI influenced their workforce assessment, although it had several open positions in technology including AI roles.
Coinbase — May 5, 2026. Coinbase laid off about 700 employees, or 14% of its workforce, as part of a restructuring effort aimed at market volatility and harnessing AI efficiencies.
PayPal — May 5, 2026. PayPal announced plans to cut around 20% of its workforce as part of an initiative to embrace AI and streamline operations.
Snap — April 16, 2026. Snap reduced its workforce by about 16%, citing AI advancements for productivity improvements.
IBM — ongoing through 2026. IBM’s job cuts range from 3,000 to 9,000 positions while simultaneously increasing entry-level AI hiring.
Atlassian — March 11, 2026. Atlassian laid off about 1,600 employees to realign toward AI and enterprise sales.
Dell — January 30 (disclosed in March 2026). Dell reported a 10% reduction in its workforce, estimating job cuts at approximately 11,000.
Oracle — March 5-31, 2026. Just before a major quarterly report, Oracle informed employees of impending job cuts despite good financial performance.
Block — February 26-27, 2026. Jack Dorsey’s Block eliminated 4,000 jobs, nearly half its workforce, emphasizing a shift toward smaller, more efficient teams.
Salesforce — February 10, 2026. Salesforce reduced its staff by fewer than 1,000, also citing AI efficiency impacts on workforce needs.
Amazon — January 28, 2026. Amazon cut about 16,000 corporate jobs as part of a restructuring strategy involving an extensive reliance on AI.
