Artificial intelligence is no longer just changing how technology companies build products—it is also transforming how they structure their workforces. Throughout 2026, many of the world’s biggest tech firms have announced significant job cuts while pointing to AI as one of the driving forces behind their restructuring efforts.
The latest company to join the growing list is Monday.com. The software company revealed plans to reduce its workforce, saying it wants to streamline operations and invest more heavily in AI-powered products and automation. It follows a pattern that has become increasingly common across Silicon Valley, where companies are shifting resources away from traditional business functions and towards artificial intelligence development.
The trend stretches across much of the technology sector. Companies including Microsoft, Oracle, Meta, Cisco, Cloudflare, Salesforce, IBM, Snap, GitLab, Amazon, Intuit and Block have all announced layoffs this year while linking the changes, at least in part, to their AI strategies. In many cases, executives argue that AI is helping automate routine tasks, allowing smaller teams to achieve the same—or even greater—levels of productivity.
GitLab, for example, cut about 14% of its workforce to redirect spending towards AI infrastructure as demand for AI-powered software continued to rise. Intuit also reduced thousands of jobs while simplifying its organisational structure to accelerate AI development. Meta eliminated roughly 8,000 positions but simultaneously moved thousands of employees into AI-focused roles, highlighting that the company is replacing some traditional jobs with new positions centred on artificial intelligence.
Other companies have taken similar approaches. Cisco said its restructuring was designed to redirect resources into strategic areas such as AI, cybersecurity and networking rather than simply reducing costs. Snap explained that advances in AI now enable employees to complete repetitive work much faster, making it possible to operate with fewer staff. Salesforce has also credited AI-powered tools for reducing the need to expand some customer support teams.
Despite the widespread layoffs, many industry analysts believe AI is not the only reason behind the cuts. Several experts argue that technology companies are also correcting years of aggressive hiring during the pandemic, when demand for digital services surged. As business growth normalises, companies are using the AI transition as an opportunity to reorganise their operations and reduce costs while increasing investment in next-generation technologies.
Recent data from outplacement firm Challenger, Gray & Christmas shows AI has become one of the most frequently cited reasons for corporate layoffs in 2026. At the same time, Layoffs.fyi estimates that well over 120,000 technology jobs have been eliminated this year, making 2026 one of the industry’s toughest years for employment in recent memory.
Still, the picture is more complex than AI simply replacing workers. Many organisations continue to hire aggressively for AI engineering, machine learning, cybersecurity and cloud computing roles, even while reducing headcount in other departments. This suggests that the technology sector is undergoing a major workforce transformation rather than a complete reduction in employment opportunities.
As AI capabilities continue to improve, more companies are expected to rethink how work is organised. While some traditional roles may disappear, new opportunities are likely to emerge for workers with skills in artificial intelligence, automation and advanced software development. The challenge for businesses and employees alike will be adapting to a rapidly changing workplace where AI is becoming an essential part of everyday operations.
