Monday.com AI layoffs entered the industry’s lengthening ledger this week when the Tel Aviv-based work management software company disclosed it would cut just over 600 employees, roughly 20% of its workforce, as part of a restructuring tied to what it calls an ‘AI-driven growth strategy.’ The announcement, filed with the SEC, described a ‘leaner, more focused operating model’ and a reworked approach to product, marketing, and go-to-market operations.
Co-founder Eran Zinman told employees in a LinkedIn memo that the move ‘was not made to reduce costs or replace people with AI,’ framing it instead as an adaptation to an AI-first vision the company laid out roughly a year ago.
Strong Numbers Behind a Difficult Decision
What makes the cuts harder to read as distress is how well the business is performing. Monday.com’s annual filing on SEC EDGAR shows full-year 2025 revenue of $1,232 million, up 27% year-over-year, following $972 million in 2024. The momentum carried into this year: the company posted Q1 2026 revenue of $351 million, up 24% year-over-year, with operating profit reaching a record $49 million and an adjusted free cash flow margin of 29%.
Full-year 2026 guidance, also from the Q1 press release, sits at $1,466 million to $1,474 million, representing growth of 19% to 20%, with non-GAAP operating income of $185 million to $191 million, an operating margin of approximately 13%, and adjusted free cash flow of $280 million to $290 million. Those figures assume a negative foreign-exchange impact of 100 to 200 basis points.
As of 31 March 2026, Monday.com’s investor relations page recorded 3,211 employees, 4,547 customers spending more than $50,000 in annual recurring revenue, and a net dollar retention rate of 110%. The company had more than 250,000 total customers as of 31 December 2025.
The restructuring itself carries a net charge of $45 million to $55 million. Monday.com’s 6-K filing shows the components: $30 million to $35 million in severance and employee benefits, a further $30 million to $35 million from office-space impairments, partially offset by approximately $15 million in non-cash share-based compensation credits.
Monday.com AI Layoffs and the Pattern Across the Industry
The company is far from alone. According to Financial Times analysis cited in the original reporting, US tech companies have eliminated nearly 140,000 jobs since the start of this year, with Amazon, Oracle, Meta, and Microsoft alone accounting for close to 50,000 of those cuts as they redirect capital toward AI data centre buildouts.
The FT also found that companies citing AI as a factor in redundancies have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, suggesting investors are not uniformly persuaded by the strategic framing.
Oracle offers the starkest illustration of restructuring costs at scale. Its 10-K filed with the SEC on 22 June 2026 disclosed total restructuring expenses of $1,779 million for fiscal year 2026, against $299 million in fiscal 2025 and $404 million in fiscal 2024. The same filing confirmed the company reduced its workforce by 21,000 employees over the prior 12 months, a 13% decline, explicitly linking part of the reduction to AI adoption across its operations.
The picture is not purely one of elimination. Meta laid off roughly 8,000 employees while moving approximately 7,000 into new AI-focused roles. IBM says it is tripling entry-level hiring for AI and hybrid-cloud positions even as cuts continue elsewhere. Anthropic and OpenAI are hiring at pace, absorbing some of the displaced talent.
Block, meanwhile, cut 4,000 jobs (nearly half its workforce) with founder Jack Dorsey writing that ‘the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company.’ Atlassian CEO Mike Cannon-Brookes put it more plainly when his company cut 10% of its staff: ‘It would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas. It does.’
For Monday.com, the test arrives soon enough: the company’s next earnings report will show whether headcount reduction and an AI-first reorganisation can keep revenue growth in the 19% to 20% band management has promised for 2026. That figure is the one worth watching.
