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AI: Jobs, Power & Money
21SEP

Monday.com denies AI drove 630 job cuts

3 min read
16:45UTC

Monday.com's co-founder denied any AI motive for 630 cuts, Zalando blamed network realignment for 2,100, and a widely relayed German AI tally turned out to be an American one.

EconomicDeveloping
Key takeaway

Employers denied the AI motive this fortnight; the trade press applied the label regardless.

Monday.com cut 630 jobs on Wednesday 22 July, about 20% of its workforce and roughly 350 of them in Israel, booking $45 million to $55 million in restructuring charges 1. Co-founder Eran Zinman told staff in writing that the cut "was not made to reduce costs or replace people with AI". The trade press counted it as an AI layoff anyway, including in a running list of 2026 AI layoffs published three days later by the same outlet that carried Zinman's denial.

Zalando is closing its Erfurt logistics centre by the end of September, ending 2,100 jobs, 1,800 of them permanent 2. An arbitration award on 9 July sealed the social plan after management and the works council failed to agree, and the German retailer has provisioned about €80 million, €30 million of that for the Sozialplan, the negotiated package of severance and transition measures German works councils bargain for. No transfer company has been set up. Zalando's stated reason is network realignment after buying About You, plus a new site at Giessen. A German employer shedding that many jobs had the AI framing available this fortnight and did not reach for it.

One figure we relayed did not survive checking. A cumulative tally of 101,743 AI-attributed job cuts circulated in German-language business press on 21 July and read, at a glance, as a German total. It belongs to Challenger, Gray & Christmas, the American outplacement firm, and counts cumulative United States cuts through June, from the same series that produced 45,849 US cuts in June alone . Every company named behind it is American 3. We are not running it as a German number, and no German equivalent exists.

The direction of attribution has flipped over eight weeks. MIT Sloan's Paul Osterman called AI attribution a cover story for cuts already planned , Microsoft's 4,800 July cuts came with an explicit denial that AI had replaced anyone , and Ford rehired engineers while IBM pledged to triple entry-level hiring after cuts went too far . Employers now deny the label. The press applies it for them.

Deep Analysis

In plain English

This story is about getting the previous stories right. Monday.com cut 630 jobs and its co-founder said in writing it had nothing to do with AI. Zalando closed a big German warehouse and the real reason was combining with a company it bought, not AI. And a widely shared number, 101,743, that people thought was a German AI-layoff count, actually comes from an American firm that tracks US layoffs only. None of these three stories were really about AI replacing workers, even though AI got the blame or the credit in each case.

Deep Analysis
Root Causes

MIT Sloan economist Paul Osterman has argued that AI attribution functions as a cover story that can run in either direction depending on the intended audience: a company facing investors may overstate AI's role to signal efficiency gains, while the same company facing employees or unions may understate it to avoid morale damage or legal exposure under works-council consultation rules.

The 101,743 figure's misattribution has a simpler root cause: it is a cumulative running total published by a US outplacement firm, and once translated into German press coverage without that context, a national total read as a nationality label rather than a scope label.

What could happen next?
  • Meaning

    AI attribution in layoff reporting runs in both directions this fortnight: some employers deny a real AI link, others let an unrelated cut be misread as AI-driven.

  • Risk

    Aggregating misattributed national figures like the 101,743 tally into cross-country comparisons will overstate AI's measured role in European job losses specifically.

First Reported In

Update #18 · SAP freezes R&D headcount as others deny AI

SLC CGIL· 27 Jul 2026
Read original
Different Perspectives
Salesforce, Synopsys and TD Bank Group
Salesforce, Synopsys and TD Bank Group
Salesforce, Synopsys and TD Bank Group each filed quarterly disclosures in late August booking restructuring charges, or none at all, without naming AI as a cause. Their silence matters because Challenger's tracker shows AI as a stated reason fell to fourth place in August even as the year-to-date AI-cut total still leads at 116,175.
Singapore, South Korea, Taiwan and Indonesia
Singapore, South Korea, Taiwan and Indonesia
Singapore launched its Skills and Workforce Development Agency on 16 September, giving citizens six months of free premium AI tools, while South Korea ring-fenced its AI tax windfall in a new Future Response Fund. Taiwan kept funding its AI build past NT$190bn and Indonesia rewired vocational training around AI literacy, betting state-built skills beat a market-led adjustment.
ver.di, CGT Fonction Publique and CCOO
ver.di, CGT Fonction Publique and CCOO
Germany's ver.di banked a 3.3% pay rise on 1 September and opened talks on a Tarifvertrag Transformation covering dismissal bans and reskilling, while France's CGT rejected Paris's AI negotiating timetable the same week. Spain's CCOO went further on 21 September, proposing to tax companies by the jobs they generate rather than wait for the next bargaining round.
BIS General Manager and Federal Reserve governors
BIS General Manager and Federal Reserve governors
The BIS's General Manager said on 10 September that AI displacement remains limited, even as the BIS's own survey found nearly 80% of firms plan to automate roles. Two Federal Reserve governors made the same point in July, arguing the labour-market data does not yet show a mass-firing event.
Bank of Canada, ONS and ECB
Bank of Canada, ONS and ECB
The Bank of Canada found the job-finding gap between AI-exposed and unexposed occupations widened from 2.2 to 13.9 percentage points since 2015-19, while separations barely moved. That framing, a hiring freeze rather than a firing wave, is echoed by the ECB's finding that euro-area AI use hit 52% of workers in 2026, concentrated among the university-educated.
Office for National Statistics
Office for National Statistics
Deferred its Transformed Labour Force Survey beyond November 2027 and disclosed a May 2026 telephone-collection failure. The ONS carries no AI-attribution layer at all, so Britain sits outside this month's cohort of measuring states by its own admission.