Monday.com has become the latest technology company to connect layoffs with an AI-focused strategy shift. TechCrunch reports that the work-management software maker plans to cut about 20 percent of its workforce, or just over 600 employees, as part of a restructuring plan.
The company described the move in an SEC filing as part of a leaner operating model and continued investment in AI-driven growth. Co-founder Eran Zinman told employees the decision was not made to reduce costs or replace people with AI, but to adapt the organization to a platform-wide AI vision.
The wider pattern is difficult to read cleanly. A Financial Times analysis cited by TechCrunch found that U.S. tech companies have cut nearly 140,000 jobs this year, with several major employers pointing to AI as one factor. The same analysis found that companies citing AI in layoff announcements underperformed the Nasdaq shortly afterward, suggesting investors may not automatically reward the explanation.
AI is also shifting hiring rather than simply eliminating work. Some companies are cutting in one area while adding AI-focused roles elsewhere, which makes the labor impact real but uneven.