Monday.com became the latest tech company to cite AI as a factor in job cuts. In 2026, US tech companies have slashed nearly 140,000 jobs, many directly linked to AI-driven restructuring.

Monday.com — The Latest AI-Linked Layoff

Monday.com, the Tel Aviv-based work management software company, announced it will lay off about 20% of its workforce, or just over 600 employees. In an SEC filing, the company said the cuts are part of a "restructuring plan" tied to its "ongoing transformation of its product, marketing, and go-to-market strategy" in support of "a leaner, more focused operating model" as it continues investing in its "AI-driven growth strategy."

The Scale of AI-Linked Layoffs in 2026

According to Financial Times analysis, U.S. tech companies have slashed nearly 140,000 jobs since the start of 2026. Amazon, Oracle, Meta, and Microsoft alone account for almost 50,000 of those cuts. Interestingly, companies citing AI as a factor in layoffs have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements. This suggests the market doesn't entirely buy the AI justification narrative.

Major Layoffs: A Running List

Microsoft cut about 4,800 roles in July 2026, most in its Xbox gaming unit. Oracle reduced its workforce by 21,000 over the past 12 months, a 13% decline. GitLab laid off roughly 350 workers (14% of staff) to fund AI infrastructure. Other companies include Workday (1,750), Salesforce, Roku, Snap, Zoom, Duolingo, and Chegg. Meta moved roughly 7,000 employees into AI-focused roles even as it laid off 8,000 others. IBM is tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts.

The Two-Sided AI Employment Story

The picture isn't uniformly bleak. AI-focused companies like Anthropic and OpenAI are hiring rapidly, absorbing talent shed elsewhere. Within companies making cuts, headcount is often shifting rather than disappearing. The strategic restructuring toward AI creates new roles even as traditional ones are eliminated. This dual dynamic—displacement in one area, creation in another—defines the current AI employment landscape.

Implications for Georgia and Beyond

For Georgian businesses and tech professionals, these trends are both a warning and an opportunity. As global tech companies restructure around AI, the demand for AI-skilled professionals in emerging markets is growing. Companies that invest in AI training and adaptation will be better positioned. The key is to understand that AI isn't eliminating work—it's transforming what work looks like.

Conclusion

The Monday.com layoffs are just the latest symptom of a massive structural shift in the tech industry. Nearly 140,000 jobs cut in a single year signals a fundamental transformation. The lesson for everyone—from large enterprises to Georgian startups—is clear: AI adaptation isn't optional, it's survival.

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