By Titik Puspa 
The increasingly pervasive influence of Artificial Intelligence on the technology sector has once again been highlighted as Monday.com, the Tel Aviv-based work management software giant, announced significant workforce reductions. On Wednesday, the company disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) that it would be laying off approximately 20% of its global staff, impacting just over 600 employees. This move is part of a comprehensive "restructuring plan" explicitly linked to the company’s "ongoing transformation of its product, marketing, and go-to-market strategy." The stated objective is to foster a "leaner, more focused operating model" while doubling down on its "AI-driven growth strategy."
In a candid internal memo shared on LinkedIn, co-founder Eran Zinman sought to contextualize the decision for employees. He emphasized that the layoffs were "not made to reduce costs or replace people with AI," but rather to realign the organization with a newly adopted AI-first vision. This strategic pivot was first articulated approximately a year ago when Monday.com underwent a significant rebranding, centered around a platform-wide integration of AI capabilities. Despite the substantial workforce reduction, which will result in estimated net restructuring charges between $45 million and $55 million, Monday.com maintains an optimistic outlook, projecting up to 20% year-over-year revenue growth for 2026.
This development places Monday.com within a broader industry trend where Artificial Intelligence is increasingly cited as a catalyst for job displacement. Recent analysis from the Financial Times reveals a stark reality for the U.S. tech sector, with nearly 140,000 jobs eliminated since the beginning of the current year. Giants like Amazon, Oracle, Meta, and Microsoft alone account for nearly 50,000 of these cuts, a phenomenon directly correlated with their massive multi-billion dollar investments in AI data center infrastructure. Intriguingly, the FT’s research also points to a potential market skepticism regarding these AI-driven layoff narratives. Companies that have publicly cited AI as a reason for job reductions have, on average, underperformed the Nasdaq index by nearly 10% in the 30 trading days following their announcements, suggesting that investors may not be entirely convinced by the corporate explanations.
However, the employment landscape within the tech industry is not uniformly bleak. The FT also highlights a counter-trend, with AI-focused companies such as Anthropic and OpenAI actively engaged in rapid hiring, absorbing some of the talent pool that has been shed by other organizations. Furthermore, within some of the very companies implementing layoffs, there is evidence of internal workforce redistribution rather than outright elimination. Meta, for instance, strategically moved approximately 7,000 employees into newly established AI-focused roles earlier this year, even as it simultaneously laid off 8,000 other workers. Similarly, IBM has announced plans to triple its entry-level hiring for AI and hybrid-cloud positions, juxtaposed with recent workforce reductions.
The following is a chronological overview of major technology companies that have announced significant layoffs in the current year, with Artificial Intelligence being a stated contributing factor:
Microsoft – July 9, 2026
Microsoft implemented a significant round of job cuts, eliminating around 4,800 roles, which represents approximately 2.1% of its global workforce. The majority of these reductions were concentrated within its Xbox gaming division, a move that comes just three years after the company’s substantial $75 billion acquisition of Activision Blizzard. In addition to these direct role eliminations, Microsoft also offered voluntary separation packages to employees, though the exact number of individuals impacted by these buyouts was not disclosed. While the company asserted that these job eliminations were "not being replaced by AI," it simultaneously acknowledged that "AI is changing how work gets done." Chief Financial Officer Amy Hood indicated that total headcount had declined year-over-year in fiscal Q3 and was projected to continue this downward trend as Microsoft prioritizes the development of "high-performing teams that operate with pace and agility" amidst escalating investments in AI technologies.
Oracle – June 22, 2026
In late June, Oracle revealed a more extensive workforce reduction than previously understood, disclosing in its annual financial regulatory filing that it had reduced its workforce by a staggering 21,000 employees over the preceding 12 months. This represents a 13% decline in its overall headcount. The company explicitly linked these cuts to the advancement and integration of AI. "The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," Oracle stated in its filing with the SEC. This disclosure indicates a more aggressive strategy of leveraging AI for operational efficiencies and workforce optimization than initially perceived.
GitLab – June 3, 2026
GitLab initiated layoffs affecting approximately 350 workers, a move that constituted about 14% of its staff. The primary drivers for these cuts were identified as the need to fund substantial investments in AI infrastructure and to effectively manage the surge in traffic generated by AI-driven workflows. CEO Bill Staples articulated that "agentic workloads" are "pushing competitors to the brink," underscoring the competitive pressure in the AI space. He also announced a "generational rebuild" of GitLab’s core infrastructure, designed to accommodate projected 100x growth requirements. As part of this strategic realignment, GitLab is exiting operations in 22 countries, flattening management hierarchies, and collaborating with an undisclosed AI lab to re-engineer its platform for agent-scale workloads. The company reported robust first-quarter revenue of $264 million, marking a 23% year-over-year increase, and anticipates incurring $30 to $35 million in restructuring costs.
Google – Ongoing through May 2026
Alphabet’s Google has been implementing a series of "quiet layoffs" across its Cloud division. These reductions have impacted various teams, including its Threat Intelligence Group and cybersecurity staff affiliated with Mandiant. This comes at a time when Google Cloud’s revenue has seen remarkable growth, increasing by 63% to surpass $20 billion for the first time, and its backlog has nearly doubled to over $460 billion. Over the past year, Google has reduced its management ranks by more than a third, specifically targeting managers overseeing small teams, resulting in a 35% decrease in managers with fewer direct reports. Unlike many other companies on this list, Google has not announced a singular, overarching layoff figure. Instead, the cuts have been executed through a continuous performance review process, a voluntary buyout program, and structural reorganizations. External estimates suggest the total number of employees affected in 2026 could range between 1,500 and over 3,000, primarily engineers.
Intuit – May 20, 2026
Financial software giant Intuit announced plans to eliminate roughly 3,000 jobs, representing about 17% of its total workforce. This significant restructuring is primarily aimed at reducing complexity within the organization and reallocating resources towards AI development and integration. CEO Sasan Goodarzi reportedly communicated to staff that the company’s objective is to streamline its structure to facilitate the delivery of enhanced products and services. This move underscores Intuit’s commitment to leveraging AI to optimize its operations and product offerings.
Meta – May 20-21, 2026
Meta, the parent company of Facebook and Instagram, carried out layoffs affecting approximately 8,000 employees, which constituted roughly 10% of its workforce. Concurrently, the company strategically transitioned about 7,000 employees into new AI-focused roles. Reports indicate that these new roles have been met with significant dissatisfaction by some employees. CEO Mark Zuckerberg conveyed to staff that these measures were essential for the company’s future, stating that "success isn’t a given" in the rapidly evolving AI landscape. This dual approach of layoffs and internal redeployment highlights Meta’s aggressive push into AI development and its restructuring efforts to support this strategic imperative.
Cisco – May 14, 2026
Cisco announced a workforce reduction of nearly 4,000 jobs, representing approximately 5% of its global staff. This decision was made despite the company reporting better-than-expected profit and revenue figures. Chief Financial Officer Mark Patterson clarified that the restructuring was "really not a savings-driven restructure" but rather an initiative focused on "realigning resources around silicon, optics, security and AI." This indicates a strategic redirection of resources towards key growth areas, with AI being a prominent focus.
Cloudflare – May 7-8, 2026
Cloudflare implemented significant layoffs, cutting about 20% of its workforce, which amounts to approximately 1,100 individuals. This occurred even as the company reported record quarterly revenue of $639.8 million, a 34% year-over-year increase, marking the highest single-quarter revenue in its history. CEO Matthew Prince explained that "the vast majority of those we laid off last week were measurers," specifying that these roles included middle management, finance, legal, internal auditing, and revenue recognition. This suggests an effort to streamline administrative and support functions, potentially through automation and AI-driven efficiencies.
General Motors – May 12, 2026
General Motors (GM) eliminated between 500 and 600 jobs, primarily within its IT departments located in Austin, Texas, and Warren, Michigan. The company cited a reevaluation of its workforce needs amidst uncertain market conditions as the reason for these cuts. However, sources familiar with the decisions indicated that AI played a role in the layoff considerations, although it was not the sole factor. GM’s official statement emphasized its commitment to "transforming its Information Technology organization to better position the company for the future." Despite these reductions, GM maintained approximately 80 open IT positions, including roles in AI, motorsports, and autonomous vehicles, signaling continued investment in these forward-looking areas.
Coinbase – May 5, 2026
The cryptocurrency exchange Coinbase announced plans to lay off about 700 employees, or 14% of its staff. This restructuring is aimed at addressing market volatility and enhancing AI efficiency within the company. Coinbase has flattened its organizational structure to five layers below the CEO and COO and plans to experiment with "one-person teams" that integrate engineering, design, and product roles. CEO Brian Armstrong highlighted the transformative impact of AI on the pace of work, noting that "engineers use AI to ship in days what used to take a team weeks." He stressed the necessity for the company to "leverage AI across every facet of our jobs."
PayPal – May 5, 2026
PayPal revealed its intention to cut around 20% of its workforce over the next two to three years, affecting more than 4,500 jobs. This strategic move is part of a broader turnaround strategy centered on aggressive AI adoption and organizational simplification. CEO Enrique Lores informed investors that the company would "aggressively adopt AI" in its development processes and has established a new "AI transformation and simplification" team reporting directly to him. This team is tasked with redesigning the company’s processes "function by function." Lores framed the layoffs as a means to remove organizational layers, with AI integration expected to extend beyond coding into customer service, support operations, and risk management.
Snap – April 16, 2026
Snap, the parent company of Snapchat, cut roughly 16% of its global workforce, impacting about 1,000 full-time employees, and also closed more than 300 open positions. CEO Evan Spiegel identified advancements in AI as a primary driver for these reductions. In a memo filed with the SEC, Spiegel stated, "Rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers." The company indicated that it had already observed smaller teams utilizing AI tools to accelerate progress across Snapchat+, enhance ad platform performance, and improve infrastructure efficiency.
IBM – Rolling through 2026
IBM has been undergoing a series of workforce reductions throughout 2026. Following cuts in Q4 2025 and Red Hat engineering reductions in April 2026, estimates suggest that between 3,000 and 9,000 U.S. positions have been eliminated. This brings IBM’s cumulative total of job cuts since September 2024 to over 15,000. Bloomberg reported that IBM intends to triple its U.S. entry-level hiring for AI and hybrid-cloud roles, even as approximately 200 HR positions were reportedly replaced by AI agents. An IBM spokesperson characterized a previous round of cuts in Q4 2025 as a "routine rebalancing" that affected "a low single-digit percentage" of its global workforce.
Atlassian – March 11, 2026
Atlassian announced layoffs impacting about 1,600 jobs, representing 10% of its workforce. The company stated that these cuts were intended to "rebalance" towards AI and enterprise sales, despite its shares rising nearly 2% on the news. CEO Mike Cannon-Brookes commented, "Our approach is not ‘AI replaces people.’ But 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." This statement reflects a candid acknowledgment of AI’s impact on workforce composition and requirements.
Dell – January 30 (Disclosed in March 2026)
Dell’s total workforce experienced a decline of approximately 10% in fiscal year 2026, resulting in the elimination of roughly 11,000 jobs. The company’s employee count dropped from 108,000 to about 97,000 over the year, with $569 million allocated to severance packages. These reductions coincided with Dell’s projection that its AI-optimized server revenue could double in fiscal year 2027, indicating a strategic investment in AI hardware alongside workforce adjustments.
Oracle – March 5-31, 2026
As previously noted, Oracle began notifying employees of significant job cuts via terminal emails. These reductions, which would ultimately total 21,000 over 12 months as disclosed in its June 22 annual filing, occurred even as Oracle reported a 27% year-over-year increase in quarterly net income to $3.7 billion. Remaining performance obligations surged by 325% to $553 billion, with savings being redirected towards AI data centers. This signifies a strategic reallocation of financial resources to bolster AI infrastructure.
Block – February 26-27, 2026
Block, formerly Square, implemented substantial layoffs, cutting 4,000 jobs, which represented nearly half of its workforce. The company’s employee count decreased from over 10,000 to under 6,000. CEO Jack Dorsey expressed on X that "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." He further predicted that "most companies are late" and that "within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes."
Salesforce – February 10, 2026
Salesforce laid off fewer than 1,000 employees across its marketing, product management, data analytics, and Agentforce AI units. The company informed Fortune that "Because of the benefits and efficiencies of Agentforce, we’ve seen the number of support cases we handle decline and we no longer need to actively backfill support engineer roles." This followed an earlier reduction of approximately 4,000 customer-support roles, shrinking that team from roughly 9,000 to 5,000. CEO Marc Benioff stated that the company required "less heads" due to AI agents handling a significant portion of the workload.
Amazon – January 28, 2026
Amazon executed layoffs affecting 16,000 corporate jobs. This figure follows a prior reduction of 14,000 employees in October 2025, resulting in approximately 9% of its corporate workforce being cut within a three-month period. The company attributed these reductions to efforts aimed at "strengthen[ing] our organization by reducing layers, increasing ownership, and removing bureaucracy." CEO Andy Jassy had previously stated in June 2025 that the company anticipated AI advancements and the rollout of generative AI and agents would "change the way our work is done." He projected that "in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company."
