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AI: Jobs, Power & Money
22OCT

Monday.com denies AI drove 630 job cuts

3 min read
16:14UTC

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 charges⁠1. 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 permanent⁠2. 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 American⁠3. 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

ad-hoc-news.de· 27 Jul 2026
Read original →
Different Perspectives
TSMC
TSMC
The chipmaker raised its 2026 revenue growth forecast to about 44% on 15 October while holding capital spending at $60-64bn. High-performance computing, mostly AI data-centre chips, made up 68% of quarterly revenue, so demand for the hardware behind automation is still rising.
South Korean government
South Korean government
Its statistics office published the first youth figures on the 15-to-34 band set by a revised law, showing a fall of 98,000 against 147,000 on the old band. Including people in their early thirties, whose employment rose, makes the official youth decline look gentler.
Office for National Statistics
Office for National Statistics
The ONS put UK vacancies at 691,000 for July to September and professional, scientific and technical vacancies 11.6% lower on the year. In September it had shown the same sector still adding jobs, so the fall appears in adverts before it reaches headcount.
Chinese government
Chinese government
Officials told a State Council Information Office briefing on 10 October that 10.52 million new urban jobs had been created by September, 87.7% of the annual target. Official figures show investment falling overall but rising in networks, data services and robot output, with urban unemployment at 5.2%.
Tharman Shanmugaratnam
Tharman Shanmugaratnam
Singapore's President, co-chair of the World Bank Jobs Council, urged governments at the Bangkok meetings to make crisis-era youth employment support a standing policy tool. That treats young workers' AI exposure as a lasting budget line rather than a shock to ride out.
Srini Pallia, Wipro
Srini Pallia, Wipro
Wipro's chief executive called AI a long-term growth driver as the company cut 6,716 staff on flat revenue. HCLTech and TCS added staff in the same quarter, so Wipro's cut sits beside its own weak revenue rather than an industry-wide fall.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.