Monday.com cites AI as a factor in laying off over 600 employees
Monday.com has announced the layoff of approximately 20% of its workforce, or more than 600 employees, citing an ongoing transformation and investment in an 'AI-driven growth strategy.' The company emphasized that these cuts are part of a restructuring plan to support a leaner operating model rather than cost-cutting. Monday.com expects $45 million to $55 million in net restructuring charges but still anticipates up to 20% year-over-year revenue growth by 2026. According to recent Financial Times analysis, U.S.-based tech companies have laid off nearly 140,000 employees since the start of this year. Companies like Amazon, Oracle, Meta, and Microsoft alone account for almost half these cuts as they invest heavily in AI infrastructure. However, firms citing AI-related job reductions have underperformed the Nasdaq by about 10% over a month following their announcements. Despite widespread layoffs, some companies are hiring rapidly within AI-focused roles. For example, Meta retrained around 7,000 employees into new AI positions while laying off others, and IBM is increasing entry-level hires for AI-related jobs.
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Topics: AI Restructuring Tech Industry Trends Workforce Reductions