The AI Era's Shifting Workforce: Monday.com and 20+ Tech Companies Blaming AI for Layoffs

The rapid advancement of artificial intelligence is reshaping industries at an unprecedented pace, and the tech sector is at the forefront of this transformation. While AI promises innovation and efficiency, it's also becoming a frequently cited reason for significant workforce reductions across major companies. The latest to join this growing list is Monday.com, a popular work management platform, whose recent layoff announcement underscores a critical trend: AI is increasingly influencing staffing decisions in big tech. This article explores Monday.com's situation and details over 20 other prominent tech companies that have attributed job cuts, in part, to the rise of AI and automation. We'll examine the scope of these layoffs, the stated reasons, and the broader implications for the future of work in an AI-driven world.

Monday.com's Workforce Adjustment in the Age of AI

Monday.com, known for its collaborative work management software, recently announced layoffs as part of a strategic realignment. While specific details about the number of affected employees and the direct percentage attributed to AI are still emerging, the company's move signals its adaptation to a landscape increasingly shaped by AI technologies. This adjustment reflects a common narrative among tech firms: leveraging AI to enhance productivity and streamline operations, which, in turn, can lead to a reduced need for human intervention in certain roles. The company's decision positions it among a growing number of tech giants that are openly discussing the role of AI in their workforce strategies. This isn't just about cutting costs; it's often framed as a necessary evolution to remain competitive and efficient in a rapidly changing technological environment.

A Broader Trend: Over 55 CEOs Blame AI for Job Cuts

The phenomenon of companies attributing layoffs to AI is not isolated. Data indicates a significant acceleration in this trend. Since 2025, over 55 CEOs have announced job cuts, citing efficiencies gained from AI. The numbers are striking: in 2024, approximately 18,000 AI-related job losses were reported across seven international companies. This figure surged by at least five times in 2025, resulting in over 155,000 layoffs directly linked to AI. The first half of 2026 alone has seen more than 155,000 roles cut for similar reasons. These layoffs are not confined to the tech industry; they are now impacting sectors like finance, logistics, consulting, media, retail, and manufacturing. More than 60% of these announced job reductions occurred at companies with over 100,000 employees. This widespread impact highlights a fundamental shift in how businesses operate and staff their teams.

Tech Companies Citing AI for Layoffs (Reverse Chronological Order)

Here's a look at some of the major tech companies that have announced significant layoffs, with AI being a stated or implied factor in their restructuring and efficiency drives:

July 2026

• Google: More than 4,500 Google employees signed a petition in July 2026, urging CEO Sundar Pichai to introduce stronger safeguards against layoffs, as the company continues to expand its AI investments while reducing headcount across multiple teams. The Alphabet Workers Union criticized Google's approach, arguing that repeated layoffs are increasingly used as a business strategy rather than a last resort. Reports also indicated potential layoffs of up to 30,000 employees from its ad sales division due to the deployment of AI tools like Performance Max, which automate ad creation and management.

June 2026

• GitLab: In June 2026, GitLab cut approximately 350 workers, about 14% of its staff, to fund investments in AI infrastructure and manage surging traffic from AI workflows.
• eBay: New workforce data in June 2026 revealed eBay's plans to lay off 639 US-based employees while simultaneously applying for 429 H-1B visa positions. CEO Jamie Iannone cited continued strength in eBay's marketplace business and growing adoption of AI tools as contributors to performance, suggesting the layoffs are part of broader strategic adjustments. This follows previous cuts of around 800 jobs in March 2026, as the company reshaped its workforce to align with strategic priorities amid heavy investment in artificial intelligence.

May 2026

• Intuit: CEO Sasan Goodarzi cited AI restructuring as the driver for plans to lay off over 3,000 employees, reallocating capital towards AI partnerships and reducing organizational complexity.
• Cisco: Cisco explicitly cited AI-driven restructuring as the reason for cutting approximately 4,000 jobs in May 2026.
• PayPal: PayPal announced plans in May 2026 to cut 4,760 jobs (20% of its workforce) over two to three years. New CEO Enrique Lores framed it as a technology and culture reset, stating the company is "aggressively adopting AI" in development processes.
• Coinbase: Coinbase cut 700 employees (14% of its workforce) in May 2026 as CEO Brian Armstrong restructured the company for the "AI era," replacing pure managers with AI-native "player-coach" roles and creating AI-agent pods.

April 2026

• Meta: Meta cut 8,000 jobs in April 2026 amid an AI spending push, with the cuts directly linked to resource reallocation toward AI investment.
• Snap Inc.: In April 2026, Snap announced layoffs of around 1,000 workers, approximately 16% of its employees, directly citing "rapid advancements in artificial intelligence." CEO Evan Spiegel noted that the company would use AI to boost performance and reduce annual costs, with AI already generating over 65% of Snap's code.

March 2026

• Oracle: Oracle's annual regulatory filing confirmed in March 2026 that "the adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce," leading to 21,000 roles eliminated over the prior 12 months.

February 2026

• Klarna: After initially replacing approximately 700 customer service workers with AI in 2024, Klarna quietly reversed course by early 2026 due to deteriorated customer satisfaction. While they initially focused on AI-driven efficiency, the company later admitted that the AI couldn't deliver the purpose those roles served, like building customer trust and handling nuanced problems, and announced they would hire humans again.

December 2025

• Accenture: Accenture announced cuts of roughly 11,000 roles as part of a restructuring tied to how work is changing, emphasizing automation and AI tools for internal tasks.

November 2025

• IBM: IBM confirmed layoffs impacting a "low single-digit percentage" of its global workforce, potentially 2,700 to over 5,000 employees, as it pivots toward AI-driven services. CEO Arvind Krishna had previously hinted that AI could replace many non-customer-facing jobs, and the company used AI to take over the work of several hundred human resources employees.
• Chegg: In October 2025, Chegg announced another round of layoffs, affecting about 45% of employees, directly linking these decisions to the "new realities of AI." This followed a 22% workforce reduction in May 2025. The company's core homework help business was severely disrupted as free AI tools like ChatGPT provided similar or better answers, leading to a sharp decline in subscribers and revenue.
• Paycom: Paycom cut 500 employees in October 2025.

September 2025

• Salesforce: Salesforce shed roughly 4,000 customer service roles after its CEO indicated needing "less heads" due to AI.

July 2025

• Recruit Holdings (Indeed, Glassdoor): Recruit Holdings announced 1,300 layoffs in July 2025.

March 2025

• Wayfair: In March 2025, Wayfair laid off 340 employees from its technology team, stating these cuts were part of a "major transformation to modernize our technology stack" and that the company would use artificial intelligence to boost productivity.

February 2025

• Workday: Workday cut 1,750 employees (8.5% of its workforce) to fund AI investments, explicitly citing AI-driven efficiency as enabling the reduction.

January 2025

• Dell: Dell cut 6,000 roles (6.6% of its workforce) as AI tools reduced demand for certain sales and support functions.

2024 (Ongoing Layoffs/Restructuring Mentioning AI)

• SAP: SAP initiated a €2 billion cost program in early 2024, affecting 8,000 positions, with a focus on making room for an AI-focused future. While aiming to avoid mass layoffs by reskilling employees, the company's CFO stated a permanent policy of trimming 1% to 2% of its workforce annually, with role eliminations tied to AI restructuring. The company has also frozen hiring for non-AI roles to redirect funds towards AI investments.
• Zoom: In February 2024, Zoom announced layoffs of approximately 150 employees, stating it was "rescoping roles to add capabilities and continue to hire in critical areas for the future," including AI. This followed a larger cut of 1,300 employees in February 2023, where CEO Eric Yuan acknowledged "mistakes" of overhiring during the pandemic.

The Nuance Behind AI-Driven Layoffs

It's crucial to understand that "blaming AI" for layoffs isn't always a straightforward explanation. Several factors are at play: 1. Efficiency Gains: AI and automation tools can indeed perform tasks previously handled by humans, leading to increased efficiency and a reduced need for headcount in specific departments, particularly in back-office, customer service, or content generation roles. Companies like IBM and Klarna illustrate this, though Klarna's experience also shows the potential pitfalls of over-reliance on AI for complex human interactions. 2. Strategic Reallocation of Resources: Many companies are investing heavily in AI research, development, and infrastructure. This often means reallocating budgets and talent away from older technologies or less strategic areas. Layoffs can free up capital to fund these new AI initiatives, leading to a "different workforce" rather than necessarily a smaller one, as SAP's CEO Christian Klein has suggested. 3. Business Model Disruption: For some companies, AI isn't just a tool but a disruptive force that changes their entire business model. Chegg is a prime example, where free AI tools directly impacted its paid homework help service, forcing drastic workforce reductions. 4. Economic Headwinds and "Convenient Excuse": The tech industry has faced significant economic pressures in recent years, leading to widespread layoffs unrelated to AI. However, the rise of AI provides a contemporary and often palatable explanation for job cuts, allowing companies to frame restructuring as forward-thinking rather than solely a response to financial difficulties. As some experts suggest, AI can be a "cleaner narrative" for cost optimization. 5. Skill Shift: The demand for certain skills is changing. Roles focused on repetitive tasks are more susceptible to automation, while there's a surge in demand for AI specialists, data scientists, and engineers who can build, manage, and integrate AI systems. This leads to a workforce "rebalancing" rather than a net loss of jobs in some cases, but it still means job losses for those whose skills are no longer in demand.

Implications for the Future of Work

The ongoing trend of AI-related layoffs has profound implications: Reskilling and Upskilling are Paramount: Employees in vulnerable roles must proactively acquire new skills, particularly in AI literacy, prompt engineering, data analysis, and complex problem-solving that AI cannot yet replicate. Focus on Human-Centric Roles: Jobs requiring creativity, critical thinking, emotional intelligence, strategic decision-making, and complex human interaction are likely to be more resilient to AI automation. Policy and Support Systems: Governments and organizations may need to develop new policies and support systems for workers affected by AI-driven displacement, including retraining programs, unemployment benefits, and potentially new models of social safety nets. Ethical Considerations: The ethical implications of using AI to displace human workers, especially when companies are highly profitable, will continue to be a subject of debate and scrutiny, as seen with Google employees' petition. The narrative that AI is solely a job creator is being challenged by the reality of these widespread layoffs. While AI undoubtedly drives innovation and creates new opportunities, it also necessitates a realistic appraisal of its impact on existing job structures and the need for continuous adaptation from both individuals and companies.

Frequently Asked Questions

Is AI solely responsible for the current tech layoffs?

No, AI is one of several factors contributing to recent tech layoffs. While many companies explicitly cite AI for efficiency gains and restructuring, economic pressures, over-hiring during the pandemic, and strategic shifts also play significant roles. AI can sometimes provide a convenient narrative for broader cost-cutting measures.

Which industries are most affected by AI-driven layoffs?

While the tech industry is at the epicenter, AI-driven layoffs are expanding to other sectors. This includes finance, logistics, consulting, media, retail, and manufacturing, particularly in roles involving repetitive tasks, customer service, or back-office functions that AI can automate.

What kind of jobs are most at risk from AI automation?

Jobs involving repetitive, predictable tasks, data entry, basic customer service, and some forms of content generation are generally more susceptible to AI automation. However, AI is also impacting more complex roles by making them more efficient, leading to fewer people needed for the same output.

What can employees do to protect their jobs in an AI-driven economy?

Employees can enhance their job security by focusing on upskilling and reskilling in areas that complement AI, such as AI literacy, prompt engineering, data analysis, critical thinking, creativity, and emotional intelligence. Roles that require complex human interaction, strategic oversight, and innovation are generally more resilient.