monday.com cuts 600 staff for an ai pivot — and the market hates it

monday.com is laying off 600 employees, roughly 20% of its workforce, to fund a strategic pivot toward an ai-first platform model. across the tech sector, companies like oracle and microsoft have cut tens of thousands of jobs this year to offset massive ai data center investments. financial times data reveals companies blaming ai for layoffs consistently underperform the nasdaq by nearly 10% in the following month, signaling wall street skepticism toward these restructuring narratives. meanwhile, ai labs like openai and anthropic are rapidly absorbing displaced talent, and giants like meta are shifting thousands of existing employees into dedicated ai roles. expect enterprise software firms to continue reshaping their workforce compositions to prioritize agentic workloads and ai infrastructure over legacy operations.