Monday.com, a Tel Aviv-based work management software company, has become the latest tech firm to link AI adoption to layoffs. The company announced in an SEC filing that it will reduce its workforce by 20%, affecting over 600 employees, as part of a broader restructuring plan tied to its digital transformation.

This development is part of a growing trend among technology companies, with 18 other firms having cited AI as a contributing factor to job cuts in 2026. These companies range from major players like Oracle and Microsoft to other industry leaders such as IBM, Amazon, and Google, all of which have made similar announcements as they adapt to evolving AI capabilities.

Monday.com’s CFO, Amy Hood, stated in a recent report that AI does not replace employees outright but alters the skill requirements and number of roles in specific areas. The company emphasized that while AI integration is not the sole driver of these changes, it plays a significant role in reshaping the workforce and operational needs.

The impact of AI on employment is becoming increasingly evident across the tech sector, with companies grappling with the need to balance automation with workforce management. This shift has led to cost reductions, changes in skill requirements, and increased focus on governance and vendor lock-in as firms navigate the integration of AI into their operations.

As the trend continues, the tech industry faces ongoing challenges in managing the transition to AI-driven workflows. Companies are still developing strategies to address the implications of AI on employment, with the situation likely to remain dynamic as more firms adopt and refine their AI implementations.