Tech Companies Are Cutting Jobs For AI; The Market Is Not Buying It

Monday.com is cutting more than 600 jobs.

Yet the company still expects revenue growth of up to 20% in 2026.

Within 30 trading days, companies that cite AI as a factor in layoffs underperform the Nasdaq by almost 10%.

Monday.com describes the move as a restructuring toward a leaner, more focused operating model. It affects around 20% of its workforce and is expected to cost between $45 million and $55 million.

Co-founder Eran Zinman says the decision was not made to reduce costs or replace people with AI. The company is reshaping its organization around its AI-first strategy.

It is part of a much broader pattern.

US tech companies have cut nearly 140,000 jobs this year. Amazon, Oracle, Meta, and Microsoft account for almost 50,000 of them, while the sector is investing hundreds of billions of dollars in AI data centers.

At the same time, jobs are not disappearing everywhere.

Meta moved around 7,000 employees into AI-focused roles while laying off 8,000 others. IBM plans to triple entry-level hiring for AI and hybrid-cloud roles. Anthropic and OpenAI are hiring rapidly.

The visible shift is therefore not just fewer employees. Companies are building different organizations, with fewer layers, different skills, and more capital directed toward AI.

But so far, the stock market is not rewarding that story.

Would you invest in companies that point to AI when announcing layoffs, or wait for proof of better results?