AI Layoff Disclosures Hit 21+ Companies , and the Market Isn't Buying the Narrative
Monday.com's 600-person cut joins a documented wave of 20+ firms citing AI for layoffs, while markets punish the companies making that claim.
2. AI Layoff Disclosures Hit 21+ Companies , and the Market Isn't Buying the Narrative
Monday.com disclosed on Wednesday, July 23, 2026, that it will cut roughly 600 employees, about 20% of its workforce, citing a restructuring tied to its AI-first platform strategy. The Tel Aviv-based work management company expects $45 million to $55 million in net restructuring charges while still projecting up to 20% year-over-year revenue growth for 2026. Co-founder Eran Zinman framed the cuts in a LinkedIn memo as organizational adaptation rather than cost reduction or AI replacement. Monday.com joins a list that now includes more than 20 companies, among them Microsoft (4,800 roles cut July 9), Oracle (21,000 over 12 months, disclosed June 22), and GitLab (350 roles, June 3), with U.S. tech firms collectively shedding nearly 140,000 jobs since January 1.
The market is reading these announcements skeptically. Financial Times analysis found that companies citing AI as a layoff factor have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements. That gap matters competitively: firms that frame cuts as AI transformation are not getting the valuation premium they appear to be seeking. Amazon, Oracle, Meta, and Microsoft alone account for nearly 50,000 of those 140,000 cuts, even as they funnel hundreds of billions into AI data center buildouts. Meta's own numbers tell the internal contradiction plainly: 8,000 employees laid off, 7,000 moved into new AI-focused roles. The restructuring story and the replacement story are running simultaneously inside the same companies.
The talent redistribution is the signal worth tracking. Anthropic and OpenAI are hiring rapidly, absorbing displaced workers from the companies making cuts. IBM says it is tripling entry-level hiring for AI and hybrid-cloud roles. The competitive pressure point is whether companies like Monday.com, which are repositioning mid-market SaaS products around AI, can actually convert restructuring charges into product differentiation before the Nasdaq discount hardens into a valuation floor.
Source: Monday.com is the latest tech company to blame AI for layoffs , here are 20 others