Monday.com is the latest tech company to blame AI for layoffs — here are 20 others
Quick Answer
Monday.com announced a 20% workforce reduction, affecting over 600 employees, citing AI-driven restructuring.
Quick Take
This follows nearly 140,000 job cuts in U.S. tech this year, with major companies like Microsoft and Oracle also laying off staff while shifting focus to AI roles.
Key Points
- Monday.com will incur $45M to $55M in restructuring charges.
- U.S. tech companies have cut nearly 140,000 jobs in 2023.
- Microsoft laid off 4,800 roles, citing AI's impact on work.
- Meta moved 7,000 employees to new AI-focused roles despite layoffs.
- AI-focused companies like Anthropic and OpenAI are rapidly hiring.
DeepSignal Analysis
What happened
Monday.com announced a 20% reduction in its workforce, impacting over 600 employees, as part of a restructuring plan linked to its AI-driven growth strategy. This follows a trend in the tech industry, where nearly 140,000 jobs have been cut in the U.S. this year, with major companies like Microsoft and Oracle also citing AI as a factor in their layoffs.
Key evidence
- Monday.com will lay off about 20% of its workforce, or over 600 employees, as part of a restructuring plan tied to its AI-driven growth strategy.
- U.S. tech companies have cut nearly 140,000 jobs this year, with Amazon, Oracle, Meta, and Microsoft accounting for almost 50,000 of those cuts.
- Companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements.
Why it matters
The layoffs at Monday.com reflect a broader trend in the tech industry where companies are restructuring their workforce in response to the growing emphasis on AI technologies. While some firms are cutting jobs, others are shifting roles towards AI-focused positions, indicating a significant transformation in workforce needs. This duality raises questions about the sustainability of job markets in tech as companies adapt to new operational models.
Source Excerpt
A running look — in reverse chronological order — at the bigger tech companies that have announced significant layoffs this year with AI as a stated factor.
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