Monday.com and Major Tech Firms Blame AI for Layoffs — Here Is the Full List
US tech companies have slashed nearly 140,000 jobs in 2026 citing AI pivots, while market analysts remain skeptical of the rationale.
Stock photo for illustration only, not from the actual event
- Monday.com cuts jobs and expects up to $55 million in restructuring charges
- US tech firms have slashed nearly 140,000 jobs since the beginning of 2026
- Amazon, Oracle, Meta, and Microsoft account for nearly 50,000 of those cuts for AI data centers
- Companies citing AI underperformed the Nasdaq by nearly 10% post-announcement
The integration of artificial intelligence has increasingly served as the justification for major technology companies restructuring their workforces. Monday.com has emerged as the latest tech firm to announce layoffs, with co-founder Eran Zinman telling employees in a LinkedIn memo that the move was not made to reduce costs or replace people with AI, but rather to adapt the organization to a new AI-first vision established during its platform-wide rebranding roughly a year ago.
Even though Monday.com, which operates two offices in the U.S., anticipates net restructuring charges ranging between $45 million and $55 million, the company still projects up to 20% year-over-year revenue growth for 2026.
Stock photo for illustration only, not from the actual event
According to a new analysis by the Financial Times, U.S. tech companies have slashed nearly 140,000 jobs since the start of this year. Amazon, Oracle, Meta, and Microsoft alone account for almost 50,000 of those cuts as they funnel hundreds of billions of dollars into building out AI data centers. Furthermore, the FT discovered that companies citing AI as a factor in their job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, suggesting the market does not entirely buy the narrative presented by these corporations.
The trend of tech companies blaming AI for layoffs while maintaining strong revenue growth highlights a major structural shift in the industry. Capital is rapidly shifting away from traditional labor toward hardware, data centers, and AI infrastructure investments. However, the sluggish stock market reaction indicates that investors remain cautious about the immediate return on investment for these massive capital expenditures.
Nevertheless, the broader employment landscape is not uniformly bleak. AI-focused companies such as Anthropic and OpenAI are hiring rapidly, absorbing talent shed from elsewhere in the industry. Headcount is also shifting internally within firms making cuts; Meta moved approximately 7,000 employees into new AI-focused roles earlier this year while laying off 8,000 others, and IBM reported tripling entry-level hiring for AI and hybrid-cloud roles alongside its recent cuts.
Major tech companies that have announced significant workforce reductions this year with AI cited as a factor include:
- Oracle: Disclosed on June 22, 2026, that it had reduced its workforce by 21,000 employees over the past 12 months—a 13% decline—attributing the cuts partly to the adoption and deployment of AI technologies.
- Google: Quietly cut employees across its Cloud division through rolling performance reviews and reorganizations, with outside estimates putting the 2026 total between 1,500 and 3,000+ engineers despite 63% Cloud revenue growth.
- Intuit: Announced plans on May 20, 2026, to eliminate roughly 3,000 jobs—about 17% of its workforce—in a restructuring effort centered on reducing complexity and reallocating resources toward AI.
- Cloudflare: Cut about 20% of its workforce (1,100 people) on May 7-8, 2026, with CEO Matthew Prince noting that the vast majority laid off were middle management, finance, legal, and internal auditing personnel.
- Snap: Cut roughly 16% of its global workforce—about 1,000 full-time employees—on April 16, 2026, with CEO Evan Spiegel citing AI advancements as a key driver to reduce repetitive work and increase velocity.
Source: TechCrunch
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