Monday.com is the latest tech company to blame AI for layoffs — here are 20 others
In July 2026, Monday.com announced it was cutting 10% of its workforce, citing “advancements in AI that allow us to operate more efficiently.” The project management platform joins a growing list of tech companies using artificial intelligence as a justification for large-scale job cuts. But is AI really the driving force, or is it becoming a convenient scapegoat for broader cost-cutting?
Over the past three years, more than two dozen well-known tech firms have publicly linked layoffs to AI automation, machine learning, or a strategic pivot toward AI. From Duolingo to Google to Klarna, the pattern is clear: executives frame workforce reductions as a necessary step to stay competitive in an AI-first world. Yet critics argue that many of these layoffs stem from over-hiring during the pandemic boom, investor pressure for profitability, or simple reorganization — with AI serving as a forward-looking cover story.
The AI Layoff Trend: A New Normal?
Since late 2022, when generative AI exploded into public consciousness, tech companies have raced to integrate AI tools across their operations. While some job displacement is genuine (e.g., AI-powered customer service bots replacing support agents), a 2024 study by the MIT-IBM Watson AI Lab found that only about 5% of roles are currently vulnerable to full automation. Yet the narrative of “AI efficiency” has become a standard talking point in layoff announcements.
Platforms like Layoffs.fyi track these trends, noting a spike in AI-related restructuring announcements starting in 2023. The pattern is so common that industry observers now joke about a “bingo card” of phrases used in press releases. Monday.com’s announcement fits this mold perfectly.
The “Vibe Coding” Factor
A key part of Monday.com’s explanation involved what engineers call “vibe coding” — using AI code generators like GitHub Copilot, Cursor, or Replit to build features with minimal human intervention. The company’s CTO stated that these tools have reduced the need for junior frontend developers. Vibe coding allows a single experienced developer to produce work that previously required a team, accelerating feature delivery but also shrinking headcount.
This is not unique to Monday.com. Dropbox, Grammarly, and Stability AI have all cited similar shifts toward AI-assisted development as a reason for trimming engineering teams. The term “vibe coding” reflects a broader industrial trend: low-code and AI-assisted development platforms are democratizing software creation, but they’re also eliminating entry-level positions.
20 Tech Companies That Blamed AI for Layoffs
Below is a table of notable companies that explicitly cited AI as a key reason for workforce reductions between 2023 and 2026.
| Company | Year | Approximate Layoff Percentage | Official Rationale |
|---|---|---|---|
| Monday.com | 2026 | 10% | AI-driven efficiency, vibe coding |
| Duolingo | 2024 | 10% | Shift to AI for content creation |
| 2023 | 6% | Reorganization to focus on AI | |
| Meta | 2023-24 | ~20% across rounds | Efficiency year, AI automation |
| IBM | 2023 | 7,800 roles | AI and automation in back-office |
| Salesforce | 2023 | 10% | Over-hiring pivot to AI productivity |
| Microsoft | 2024 | <1% | Restructuring for AI integration |
| Amazon | 2023 | ~18,000 positions | Automation in logistics & cloud |
| Zoom | 2023 | 15% | AI replacing customer support |
| Chegg | 2023 | 4% | ChatGPT impacting homework help |
| Grammarly | 2024 | 7% | Shift to AI-powered writing tool |
| Stability AI | 2023 | 20% | Refocus on generative AI |
| Intel | 2023 | 5% | AI chip focus, legacy cuts |
| Dropbox | 2024 | 20% | Focus on AI-powered cloud |
| Roku | 2024 | 6% | AI recommendation automation |
| Klarna | 2024 | 10% | AI customer service bot |
| RingCentral | 2023 | 10% | AI-driven efficiencies |
| Woo | 2024 | 15% | AI replacing sales roles |
| Splunk | 2024 | 4% | Machine learning automation |
| UiPath | 2025 | 5% | AI displacing RPA development |
Numbers are approximate and sourced from public filings, company blogs, and layoff tracking sites like Layoffs.fyi.
Is AI Really to Blame? The Data Says Otherwise
While AI is certainly changing the nature of work, the scale of layoffs often exceeds what pure automation can explain. For instance, Duolingo’s 2024 layoffs affected contractors who created language exercises — but the company also reported record revenue. Similarly, Monday.com’s 10% cut came after a strong quarter. In many cases, companies use AI as a forward-looking excuse to trim fat and satisfy investors, rather than a direct cause of job elimination.
A more honest reading: AI is accelerating a pre-existing trend of leaner teams, but the majority of positions lost are still due to economic cycles and strategic shifts. Workers should not panic, but they should adapt.
How to Stay Relevant in the Vibe Coding Era
Instead of fearing AI, savvy professionals are learning to leverage it. Tools like Monday.com are now deep platforms where AI automates routine tasks — freeing humans for creative work. For example, ASI Biont supports integration with Monday.com via API — learn more at asibiont.com/courses. This allows power users to build custom workflows that augment their skills rather than replace them.
Upskilling in AI literacy, prompt engineering, and low-code automation is becoming as essential as learning Excel was two decades ago. Companies want employees who can work with AI, not just beside it.
Conclusion
The list of tech companies blaming AI for layoffs is long and growing. Monday.com is merely the latest entry. But the trend reveals more about corporate communication strategies than about AI’s actual impact on employment. The real lesson: AI is a tool that can amplify human productivity — but only for those who invest in learning how to use it.
Whether you’re a developer, marketer, or project manager, the “vibe coding” moment is your signal to evolve. Start by integrating AI into your current workflow, and consider platforms that help you automate the mundane so you can focus on the meaningful.
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