Monday.com just joined a very crowded club. The project management software company announced layoffs and cited AI as a core reason. It is not the first. It will not be the last. At least 20 other major tech companies have used the same script, and the workers caught in between are left holding nothing but a severance check and a LinkedIn post about ” new chapters.”
What Monday.com Actually Said
Monday.com cut roughly 250 jobs in mid-2025, according to TechCrunch. The company told employees that AI-driven efficiency gains had reduced the need for certain roles. That is a polite way of saying the software now does work that humans used to do.
This follows a pattern that has been building for years. According to Layoffs.fyi, tech companies eliminated more than 260,000 jobs in 2023 alone. In 2024 and into 2026 the pace has not slowed. What has changed is the reason companies give. “Restructuring” has been replaced by “AI transformation.” Same result. Different branding.
The International Labour Organization estimates that AI could affect up to 40% of jobs globally, with high-income countries facing the most immediate exposure. That number is not abstract anymore. It is playing out in press releases from San Francisco to Tel Aviv to London.
The Real Story the Press Is Not Telling
Here is what I actually think. Most of these layoffs are not really about AI. Not yet. They are about using AI as an acceptable excuse to cut costs during a period of investor pressure and slowing growth.
Think about it. Klarna claimed its AI assistant did the work of 700 customer service agents, according to the company’s own press release in 2024. That sounds impressive. But Klarna’s revenue growth was slowing and investors were watching every dollar. AI gave them a narrative. “We’re not shrinking. We’re evolving.”
IBM told investors in 2023 it planned to pause hiring in roles AI could replace, affecting approximately 7,800 positions, according to Bloomberg. IBM’s stock went up on the news. The market loved it. Fewer people, same output, better margins. That is the play.
Here is the full list of companies that have cited AI as a reason for cuts since 2023:
- Monday.com
- IBM
- Klarna
- BT Group (55,000 jobs cut by 2030, up to 10,000 attributed to AI, according to the BBC)
- Meta
- Microsoft
- Amazon
- Salesforce
- Duolingo
- Dropbox
- Chegg
- Workday
- ServiceNow
- Intuit
- Indeed
- SAP
- Dell
- Cisco
- UPS
- Teleperformance
Some of these cuts were small. Some were massive. Every single one came with a statement about AI efficiency, automation, or “intelligent operations.” The workers were the last paragraph in those press releases.
Here is the part that most financial journalists miss. When companies run leaner, the people who survive are the ones who can direct the tools, not just use them. If you are starting a business or restructuring your income away from a single paycheck, the legal and paperwork side still has to get done. Services like Inc Authority let you file your LLC for free so you can keep your startup budget pointed at the things AI cannot handle yet, like client relationships, creative judgment, and business development.
What This Means for You
If you work in tech, finance, or any office role, you need to get honest with yourself. The question is not whether AI will touch your job. It is when and how much.
I would focus on three things right now.
First, own your outcomes, not your process. Companies cut the people who are process dependent. The person who knows how to run the software gets replaced by better software. The person who knows what outcome the business needs, and can use any tool to get there, keeps their seat.
Second, become a builder, not just a user. People who understand how AI tools work at a deep level, who can configure them, prompt them well, and audit their output, have a real buffer. It is not permanent, but it buys time and it pays more. Learn one AI tool deeply rather than ten of them at the surface level.
Third, build income that does not depend on one employer. A paycheck is the most fragile income stream there is. One board decision and it is gone. If you are picking up consulting work or running a side business, contracts matter. I have used signNow to handle client e-signatures fast without needing a lawyer on retainer for every deal. Clean paperwork protects you when the relationship turns sideways.
The workers getting laid off are not failing. The system is running exactly as designed. It was always built to optimize for capital, not labor. AI just makes that optimization faster and gives it a better press release.
The Bottom Line
Monday.com is not the villain here. Neither is IBM or Klarna. They are doing what every public company does: cut costs to protect margins and tell investors a story they want to hear. AI is that story right now. The workers are the footnote. According to Goldman Sachs, AI could automate up to 300 million full-time jobs globally over the next decade. Twenty-one companies into this trend and we are still in the early rounds. The people who come out ahead will be the ones who stopped waiting for permission to build something they own.
Frequently Asked Questions
Why are so many tech companies blaming AI for layoffs?
AI gives companies a forward looking narrative for cost cuts that would otherwise look like a retreat. Investors respond better to “we’re automating” than “we’re shrinking.” The underlying pressure in most cases is margin improvement and slowing growth, with AI as the mechanism or the cover story.
Is AI actually replacing jobs or is this corporate PR?
Both. Some roles, especially in customer service, data entry, and basic content production, are genuinely being replaced by AI systems right now. Other layoffs use AI as cover for cuts that would have happened anyway due to slower revenue. The honest answer is that the ratio of real automation to PR varies by company and by role.
What jobs are most at risk from AI layoffs?
Roles with repetitive, predictable tasks face the most pressure: customer service, data processing, basic coding, legal document review, and content moderation. According to McKinsey, office and administrative roles have the highest potential for automation in the near term. Creative and relationship roles are next on the list but further out.
What can workers do to protect themselves from tech company AI layoffs?
Focus on skills that require judgment, creativity, and direct relationship management. Build income streams outside of a single employer as fast as you can. Learn to use AI tools at a deep level rather than avoiding them. The goal is to be the person directing AI, not the person AI replaces.
How is Monday.com’s situation different from the others on the list?
It is not, really. Monday.com’s layoffs fit the same pattern seen at IBM, Salesforce, and Duolingo: an efficiency push tied to AI capability framed as a strategic move rather than a cost cut. What makes it notable is the timing in mid-2026 and the brand recognition, which puts the broader trend back in the news cycle at a moment when workers are starting to pay closer attention.
