Monday.com, a leading project management software company based in Tel Aviv, has become the latest corporation to carry out mass layoffs, citing artificial intelligence (AI) integration. The company announced it is cutting approximately 20 percent of its workforce, equivalent to more than 600 employees. This move is part of a major restructuring to streamline operations and focus its business strategy on AI-based technology.
Co-founder and Co-CEO of Monday.com, Eran Zinman, emphasized that this policy is not merely a budget efficiency measure or an effort to replace humans with machines. The restructuring aims to align the organization with the company's long-term, AI-first vision. Despite having to bear restructuring costs of up to USD 55 million, Monday.com remains optimistic about recording revenue growth of up to 20 percent by 2026.
Monday.com's move reflects a broader trend in Silicon Valley. Throughout this year, US tech giants like Amazon, Meta, and Microsoft have cut nearly 140,000 workers to shift investments into AI infrastructure. Interestingly, the market has responded skeptically. Data shows that the stock performance of companies announcing AI-related layoffs fell on average 10 percent below the Nasdaq index in the month following the announcement, while pure AI companies like OpenAI are actively recruiting new talent.
The impact of this global phenomenon is expected to spill over to Indonesia through several channels. First, multinational tech subsidiaries operating in the country may adjust job roles, shifting priorities from conventional positions to AI-focused functions. Second, the surge in global data center investments opens a golden opportunity for Indonesia to become a regional hub, provided that energy infrastructure and connectivity readiness are improved.
Additionally, the local startup ecosystem will face a tough challenge in the increasingly competitive scramble for AI talent, which could potentially drive up operational costs. The government and industry players in Indonesia are urged to immediately prepare reskilling programs so that the local workforce can adapt to new demands, such as data engineering and cybersecurity, to avoid a wave of unemployment caused by automation.
