TLDRocket
26 July 2026
Monday.com's decision to eliminate 600 employees—20 percent of its workforce—while citing AI-driven product transformation has become almost routine. The company joins at least 20 others in 2026 making similar announcements, with U.S. tech companies having shed nearly 140,000 jobs this year. Amazon, Oracle, Meta, and Microsoft alone account for roughly 50,000 cuts as they funnel capital into AI data center buildout. Yet the market is skeptical: companies that cite AI in layoff statements have underperformed the Nasdaq by nearly 10 percent in the 30 days following their announcements, suggesting investors view the restructuring as defensive rather than transformative. Meanwhile, AI-native firms like Anthropic and OpenAI are hiring, creating a bifurcated labor market where established tech sheds headcount and younger AI companies expand.
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