Monday.com, a work management software company based in Tel Aviv, recently announced the layoff of about 600 employees, or 20% of its workforce. This move is part of an ongoing ‘restructuring plan’ as the company shifts towards a leaner, more AI-focused operating model.

The broader tech industry has seen significant layoffs this year, with over 140,000 jobs cut in total. Companies like Amazon, Oracle, Meta and Microsoft have all cited AI as a factor, though their stock performance suggests otherwise. Notably, some companies are reassigning employees to new roles focused on AI development instead of outright layoffs.

Microsoft, for instance, announced cuts of around 4,800 jobs but emphasized that these were not being replaced by AI. Oracle cut 21,000 jobs over the past year and cited AI as a factor in workforce reductions. GitLab, on the other hand, laid off approximately 350 workers to fund AI infrastructure investment.

Google has quietly shed engineers across its Cloud division, with outside estimates suggesting cuts between 1,500 and 3,000+ engineers over the past year. Meta, under CEO Mark Zuckerberg’s leadership, announced a significant reduction in workforce, laying off around 8,000 employees while moving some into AI-focused roles.

While these changes reflect industry shifts towards AI, they also highlight the complex dance between innovation and employment in technology.