Monday.com joins tech companies citing AI as reason for mass layoffs

The tech industry is going through a period of accelerated restructuring, and artificial intelligence has become the go-to explanation for waves of layoffs. Monday.com, the Israeli company known for its work management platform, is the latest organization to announce significant staff cuts, directly citing AI's impact on its operational structure, according to TechCrunch.

A growing trend across tech

According to the American publication, Monday.com joins a list of at least 20 major tech companies that have publicly stated this year that AI-driven automation was a determining factor in their layoff decisions. TechCrunch maintains an updated, reverse-chronological record of these announcements, offering a broader picture of how the industry is justifying its workforce reductions.

The practice of citing AI as the official reason for layoffs has become increasingly common in recent months, as companies recalibrate their cost structures and invest heavily in generative technologies. The phenomenon raises legitimate questions among analysts: to what extent is AI actually replacing certain roles, and to what extent is it a convenient justification for cost-cutting decisions driven by other economic factors?

What this means for the job market

For employees in the tech sector, these repeated announcements are creating an increasingly pronounced climate of uncertainty. Companies are sending a dual message: on one hand, they are aggressively investing in AI solutions to streamline internal processes, while on the other, they are cutting the very human teams that these automations might have affected.

The Monday.com case confirms a broader global trend, in which corporate leaders use the AI narrative both to justify restructuring decisions to investors and to signal a transition toward more technologically efficient operating models. It remains to be seen whether this trend will ease off or whether we will see even more similar announcements before the year is out.