French startup Ÿnsect shot into the spotlight when “Iron Man” star Robert Downey Jr. touted its merits on the Late Show during Super Bowl weekend 2021. Now, nearly four years later, the insect farming company has been placed into judicial liquidation — essentially bankruptcy — for insolvency.
The company’s demise is hardly a surprise, as Ÿnsect had been embattled for months. Still, there is plenty to unpack about how a startup can go bankrupt despite raising over $600 million, including from Downey Jr’s FootPrint Coalition, taxpayers, and many others.
Ultimately, Ÿnsect failed to fulfill its ambition to “revolutionize the food chain” with insect-based protein. But don’t be too quick to attribute its failure to the ‘ick’ factor that many Westerners feel about bugs. Human food was never its core focus.
Instead, Ÿnsect focused on producing insect protein for animal feed and pet food, two markets with very different economics and margins that the company never quite chose between.
That indecision extended to its M&A strategy. In 2021, Ÿnsect acquired Protifarm, a Dutch company raising mealworms for human food applications, adding a third market to the mix. Even as the company announced the deal, then-CEO Antoine Hubert admitted it would take a couple of years for human food to represent just 10% to 15% of Ÿnsect’s revenue.
“We still see pet food and fish feed being the largest contributor to our revenues in the coming years,” Hubert declared at the time. In other words, Ÿnsect was acquiring a company in a market segment that would remain marginal for years — at a time when the startup desperately needed revenue growth.
And revenue was the problem. According to publicly available data, Ÿnsect’s revenue from its main entity peaked at €17.8 million in 2021 (approximately $21 million) — a figure reportedly inflated by inflated by internal transfers between subsidiaries. By 2023, the company had racked up a net loss of €79.7 million ($94 million).
Techcrunch event
San Francisco | October 13-15, 2026
So how did a company with such meager revenue raise over $600 million? The answer wasn’t hype-driven crossover funds paying inflated multiples during the 2021 funding frenzy. Instead, Ÿnsect attracted impact-focused investors like Astanor Ventures and public investment bank Bpifrance that bought into a compelling sustainability vision.
Its pitch to them was simple — offering an alternative to resource-intensive proteins like fishmeal and soy. That same thesis also attracted significant capital to competitors like Better Origin and Innovafeed, and it seemed promising.
But the vision collided with market reality. Animal feed is a commodity market driven by price, not sustainability premiums. In a perfect world, insect protein would be fully circular, with insects fed on food waste that would otherwise go to landfill. But in practice, factory-scale insect production typically ends up relying on cereal byproducts that are already usable as animal feed — meaning insect protein just adds an expensive extra step. For animal feed, the math simply wasn’t working.
Ÿnsect eventually recognized this. Pet food proved to be a different equation: it is less price-driven than animal feed and a far better market for insect protein, even with competition from other alternative proteins such as lab-grown meat. By 2023, the company refocused its strategy on pet food and other higher-margin segments, with Hubert citing broader economic pressures.
“In an environment where there is inflation on energy and raw materials but also on the cost of capital and debt, we cannot afford to invest loads of resources in markets which are the least remunerative (animal feed), while you have other markets where there is a lot of demand, good returns and higher margins,” Hubert said at the time.
The 2023 pivot to pet food came too late. By then, Ÿnsect had already committed to a massive, capital-intensive bet that would ultimately doom the company. That bet was Ÿnfarm, a “giga-factory” in Northern France that the company billed “the world’s most expensive bug farm.” Built for insect production at scale, the facility consumed hundreds of millions in funding — money spent before Ÿnsect had proven its business model or figured out its unit economics.
To oversee Ÿnfarm’s launch, Ÿnsect brought in Shankar Krishnamoorthy, a former executive at French energy giant Engie. When that move to pet food failed to save the company, Krishnamoorthy replaced Hubert as CEO.
Ÿnsect then shut down the production plant it had acquired from Protifarm and cut jobs. But shuttering one facility while operating a giga-factory built for the wrong market couldn’t solve the fundamental problem.
For Professor Joe Haslam, who teaches a course on Scaling Up in the MBA Program at IE Business School, “Ÿnsect’s struggles are not a mystery and not mainly about insects. They are the result of a mismatch between industrial ambition, capital markets, and timing, compounded by some execution and strategy choices.”
The fact that Ÿnsect failed doesn’t mean the entire insect farming sector is doomed. Competitor Innovafeed is reportedly holding up better, in part because it started with a smaller production site and is ramping up incrementally.
For Prof. Haslam, Ÿnsect exemplifies a broader European problem. “Ÿnsect is a case study in Europe’s scaling gap. We fund moonshots. We underfund factories. We celebrate pilots. We abandon industrialization. See Northvolt [a struggling Swedish battery maker], Volocopter [a German air taxi startup, and Lilium [a failed Germany flying taxi company],” he said.
The failure has prompted some soul-searching. Hubert himself co-founded Start Industrie, an association advocating for policies to support French industrial startups — a recognition that Europe needs more than just funding to build the next generation of deep-tech companies.
Xtra customers had put down a $20 reservation for the Xtra Muse 2 Pro in exchange for a pre-order and an early bird discount of $60 off the camera when it went on sale. Along with a refund, Xtra is also issuing a 10 percent off coupon to customers that can be used on their current line of products.
Despite taking preorders, Xtra never shared a prospective launch date for the camera, which was a major point of criticism for customers across social media.
Why did Xtra cancel camera preorders?
Xtra says the refunds were due to “product and launch readiness” and didn’t provide any further explanation. However, the preorder cancellations come shortly after the FCC announced investigations into eight companies, including Xtra.
Mashable Light Speed
DJI, the popular China-based drone and action camera company, has effectively been banned in the U.S. As Mashable previously reported, the ban started late last year after Trump’s FCC cited national security concerns and data-spying issues. DJI products that were for sale before the ban can still be sold for now. Consumers with DJI devices can still use them. However, the U.S. government has not approved any new DJI products, so they can’t be imported into the country.
Enter Xtra. Xtra came onto the scene last year with its lines of cameras that appear to be clones of DJI’s line of cameras. The company is rumored to be a “DJI front company,” or a company explicitly set up to import DJI’s banned products into the U.S. Online sleuths and outlets such as The Verge have previously looked into Xtra’s potential relations with DJI and found numerous similarities and connections. Xtra’s Muse 2 Pro camera, for example, looks exactly like DJI’s new Osmo Pocket 4 Pro camera aside from a few design alterations.
In addition, DJI has gone after competitors like Insta360 with legal claims involving its camera patents. Yet, DJI has remained mum on Xtra’s products, which would appear to infringe way more than others.
The eight companies under investigation were previously asked to provide information on whether any of the products it sells should be on the list of banned items. However, none of these companies apparently responded to the FCC. As a result, the FCC is demanding the information and has levied a $25,000 fine against each of them, including Xtra.
At this point, the status of the Xtra Muse 2 Pro is unclear. The company is not outright canceling the launch; however, the preorder cancellations and the FCC news point to a potentially grim outcome for U.S. consumers. For now, at least, U.S. consumers looking to buy an Xtra Muse 2 Pro or DJI Osmo Pocket 4 Pro can look into the Insta360 Luna Ultra, which is not banned in the country.
Xtra customers had put down a $20 reservation for the Xtra Muse 2 Pro in exchange for a pre-order and an early bird discount of $60 off the camera when it went on sale. Along with a refund, Xtra is also issuing a 10 percent off coupon to customers that can be used on their current line of products.
Despite taking preorders, Xtra never shared a prospective launch date for the camera, which was a major point of criticism for customers across social media.
Why did Xtra cancel camera preorders?
Xtra says the refunds were due to “product and launch readiness” and didn’t provide any further explanation. However, the preorder cancellations come shortly after the FCC announced investigations into eight companies, including Xtra.
Mashable Light Speed
DJI, the popular China-based drone and action camera company, has effectively been banned in the U.S. As Mashable previously reported, the ban started late last year after Trump’s FCC cited national security concerns and data-spying issues. DJI products that were for sale before the ban can still be sold for now. Consumers with DJI devices can still use them. However, the U.S. government has not approved any new DJI products, so they can’t be imported into the country.
Enter Xtra. Xtra came onto the scene last year with its lines of cameras that appear to be clones of DJI’s line of cameras. The company is rumored to be a “DJI front company,” or a company explicitly set up to import DJI’s banned products into the U.S. Online sleuths and outlets such as The Verge have previously looked into Xtra’s potential relations with DJI and found numerous similarities and connections. Xtra’s Muse 2 Pro camera, for example, looks exactly like DJI’s new Osmo Pocket 4 Pro camera aside from a few design alterations.
In addition, DJI has gone after competitors like Insta360 with legal claims involving its camera patents. Yet, DJI has remained mum on Xtra’s products, which would appear to infringe way more than others.
The eight companies under investigation were previously asked to provide information on whether any of the products it sells should be on the list of banned items. However, none of these companies apparently responded to the FCC. As a result, the FCC is demanding the information and has levied a $25,000 fine against each of them, including Xtra.
At this point, the status of the Xtra Muse 2 Pro is unclear. The company is not outright canceling the launch; however, the preorder cancellations and the FCC news point to a potentially grim outcome for U.S. consumers. For now, at least, U.S. consumers looking to buy an Xtra Muse 2 Pro or DJI Osmo Pocket 4 Pro can look into the Insta360 Luna Ultra, which is not banned in the country.
#Xtra #suddenly #cancels #preorders #clone #banned #DJI #Osmo #Pocket #Pro #camera">Xtra suddenly cancels preorders for its clone of banned DJI Osmo Pocket 4 Pro camera
Xtra, the camera company that suddenly popped up last year, is canceling preorders and issuing refunds for its upcoming Xtra Muse 2 Pro gimbal camera.
“After reviewing our product and launch readiness, XTRA has decided to pause the current Early Bird program,” the company said in a statement posted on its website and in emails sent to customers viewed by Mashable. “Because we are unable to confirm a reliable launch timeline at this stage, we do not believe customers’ funds should remain on hold.”
Xtra customers had put down a $20 reservation for the Xtra Muse 2 Pro in exchange for a pre-order and an early bird discount of $60 off the camera when it went on sale. Along with a refund, Xtra is also issuing a 10 percent off coupon to customers that can be used on their current line of products.
Despite taking preorders, Xtra never shared a prospective launch date for the camera, which was a major point of criticism for customers across social media.
Why did Xtra cancel camera preorders?
Xtra says the refunds were due to “product and launch readiness” and didn’t provide any further explanation. However, the preorder cancellations come shortly after the FCC announced investigations into eight companies, including Xtra.
Mashable Light Speed
DJI, the popular China-based drone and action camera company, has effectively been banned in the U.S. As Mashable previously reported, the ban started late last year after Trump’s FCC cited national security concerns and data-spying issues. DJI products that were for sale before the ban can still be sold for now. Consumers with DJI devices can still use them. However, the U.S. government has not approved any new DJI products, so they can’t be imported into the country.
Enter Xtra. Xtra came onto the scene last year with its lines of cameras that appear to be clones of DJI’s line of cameras. The company is rumored to be a “DJI front company,” or a company explicitly set up to import DJI’s banned products into the U.S. Online sleuths and outlets such as The Verge have previously looked into Xtra’s potential relations with DJI and found numerous similarities and connections. Xtra’s Muse 2 Pro camera, for example, looks exactly like DJI’s new Osmo Pocket 4 Pro camera aside from a few design alterations.
In addition, DJI has gone after competitors like Insta360 with legal claims involving its camera patents. Yet, DJI has remained mum on Xtra’s products, which would appear to infringe way more than others.
The eight companies under investigation were previously asked to provide information on whether any of the products it sells should be on the list of banned items. However, none of these companies apparently responded to the FCC. As a result, the FCC is demanding the information and has levied a $25,000 fine against each of them, including Xtra.
At this point, the status of the Xtra Muse 2 Pro is unclear. The company is not outright canceling the launch; however, the preorder cancellations and the FCC news point to a potentially grim outcome for U.S. consumers. For now, at least, U.S. consumers looking to buy an Xtra Muse 2 Pro or DJI Osmo Pocket 4 Pro can look into the Insta360 Luna Ultra, which is not banned in the country.
This is The Stepback, a weekly newsletter breaking down one essential story from the tech world. For more on all things vertical video, follow David Pierce. The Stepback arrives in our subscribers’ inboxes on Sunday at 8AM ET. Opt in for The Stepbackhere.
For a while, every social and media platform had its own identity. YouTube was for clips of TV shows and movies, and the home of so many members of a burgeoning creator community. Instagram was mostly pictures. Netflix was trying to be the on-demand HBO. Facebook was about friends. Twitter was about news. Snapchat was a messaging app.
All these apps did have one important thing in common, though: They were growing up alongside the smartphone. Billions of new people were coming online for the first time, and they began to make content that made sense for the tall, skinny new devices in their hands. Selfies were a vertical art form, both because the photos filled the screen better and because it was just easier to hold the phone and take the photo that way. Some resisted the idea of vertical video for years — they’d argue that our eyes are meant to scan horizontally rather than vertically, and that vertical video looked bad on widescreen laptops. But ultimately phones won, and we hold our phones upright, so our phone experiences turned upright. That includes entertainment.
As has been true so many times, Snap figured this out before anyone. It launched Stories in late 2013 as a slightly more relaxed way to see what your friends are up to. CEO Evan Spiegel called it a “totally new way to share your day with friends — or everyone.” It took off in a massive way, and by the middle of 2014 was the most popular feature on Snapchat. That’s the kind of virality that Mark Zuckerberg tends to notice, and by August of 2016, the feature had been copied more or less exactly into Instagram. Kevin Systrom, then the CEO of Instagram, said of Spiegel and Snapchat that “they deserve all the credit” for Stories. The implication? That this was no longer a proprietary feature of a single social network; it was just in the air. Stories were for everyone. They started showing up on LinkedIn, Tinder, Medium, and so many other places.
Stories weren’t always video, but as cameras and upload speeds improved, video became the dominant medium in many ephemeral spaces. And video stories had two semi-magical properties: They were perfectly suited to endless, mindless scrolling, and they made it really easy to integrate ads. Only a few months after turning on Stories in Instagram, by which point half the platform’s users were already using Stories, Facebook began flooding ads into the product. The semi-randomness of Stories made ads actually seem less intrusive — you’d see a photo of a dog, a video of a hike, an ad for jeans, your friend’s makeup routine, brunch pics, an ad for blush. Video ads felt more premium, took up the whole screen, and were thus far more lucrative for the social platforms.
With apologies to the short, brilliant life of Vine, the six-second video platform that helped invent so much about the video-first social network, it wasn’t until TikTok took off that things really turned again. The platform launched in the US in 2018, but had been popular for a few years in China as Douyin and elsewhere as Musical.ly. TikTok combined the vertical-first format of Stories with the permanence of YouTube, but it also made video easier than ever. It had filters like Instagram and Snapchat, but also supplied a steady stream of video ideas through the platform’s many trends, offered access to music and sound effects, and made it easy to stitch or duet a video.
By defaulting to the purely algorithmic For You page, TikTok also freed creators from caring about curating their profile or worrying about posting too much — you could just pump out videos and trust the algorithm to deliver them. And so that’s what people did. Pretty quickly, TikTok became one of the fastest growing apps on the planet, and its daily usage numbers became the envy of the industry. Instagram may have had more users, but TikTok users spent far more time TikToking.
When TikTok became a phenomenon, just about everyone jumped on the vertical video bandwagon. Reels launched in 2020 and became a core feature of both Instagram and Facebook; YouTube created Shorts a year later. By the end of 2021, Twitter had both launched and killed a similar feature called Fleets. By this point, this kind of full-screen, vertical-scrolling video was part of the lingua franca of the smartphone. At the same time, in a search for ever more engagement, these platforms were learning another lesson from TikTok: to stop relying on your friends to post interesting content, and instead to show you whatever the algorithm thinks you might like. Social networks were gone, replaced by social media — entertainment with a comments section.
Short-form, vertical video has effectively won the internet. Business is booming, and viewers show no sign of tuning out. Meta said in 2024 that Instagram users were spending more than half their time in Reels, and said in 2025 the feature was turning into a $50 billion annual business across Meta’s apps. About 63 percent of young adults and teens are on TikTok, per Pew Research Center, and one in five teens reported being on the app “almost constantly.” YouTube reported 200 billion daily views of Shorts at the end of 2025, and said that Shorts earned more money per watch hour than standard YouTube videos.
The last three or four years have been about relentless standardization in social media. The pace with which these products copy each other, and regress back toward parity, has been absolutely astonishing. First, Shorts and Reels both aped TikTok’s design, its duetting and stitching, and its close relationship with sounds and music. Then they bought into TikTok’s idea of prioritizing content over connection — followers are dead, long live the algorithm. TikTok pushed hard into shopping, then suddenly Reels and Shorts became a lot more shoppable. YouTube began to grow on TVs, and suddenly TikTok and Instagram started investing in its own TV apps. Videos got longer and longer across platforms, to allow more ads. All the apps got really into livestreaming for a while. And micro dramas. They’ve relentlessly copied each other on big things like letting users control their algorithm, and small things like Clear Mode.
As the social platforms spin endlessly around each other, they’ve gotten some surprising company. Company after company started to notice their content floating around social media platforms, often in dubiously legal ways, and tried to take some of the watch time for themselves. Spotify decided it, too, wanted to be a video service, and built a vertical-scrolling feed for users to explore. Disney built a TikTok clone for ESPN and another for Disney Plus, both called Verts. Netflix, Prime Video, and Paramount Plus all called their clones Clips.
There are two reasons for the ongoing onslaught of short-form vertical video: time spent and advertising. The endlessly scrolling video feed turns out to be one of the most engrossing forms of entertainment ever devised (to the point that it has become a regulatory problem for the social platforms), and in a relentless competition for eyeballs and attention, it has become everyone’s best idea. In 2024, when Meta switched its default video player to a vertical-first layout across all platforms, the race was officially won.
Meanwhile, as those platforms have captured more of our time and attention, short-form video has become a dominant force of advertising on the internet, which means advertisers are already comfortable making ads designed to go between videos in the feed. And as so many companies turn to AI to do their ad targeting, all they really need is the creative to get started. “So long as clients give us different assets — a six-second ad, a 15-second ad, a long-format, a vertical ad — AI is essentially powering everything else,” YouTube’s Brian Albert told me last year. “From the audiences you’re reaching, to the contextual placements, to the ad that’s actually showing.” The combination of AI and vertical video has become a self-fulfilling prophecy: The more it wins, the easier it becomes for everyone else to get on board, and so it just keeps winning.
Vertical video haters, I have bad news: It’s only going to get worse. TikTok, YouTube, and Instagram are if anything going to become more short-form and vertical, since those short videos are easier to make and easier to load into endlessly scrolling feeds. Video services used to require you to pick something and press play, but now all they need is for you to open the app and they can start showing you ads. They’re not going to want to go back. Here’s how dominant video is: Facebook is testing a new version of the app that loads a full-screen video feed when you open the app. If that happens, there will be no Facebook — only Reels. After all this time, they’ve trained users to want and expect this kind of fast-paced, instant-gratification entertainment, to the point where even a full-length movie can feel like a chore.
Meanwhile, after years of raising prices, streaming services around the world are hoping they can turn to advertising to keep growing. For a while, they could coast on the back of linear TV, borrowing those ads to run on digital platforms. But a TikTok ad won’t make any sense on Netflix, so Netflix decided the best thing to do is build something that looks more like TikTok. A recent HubSpot report found that short-form video was by a wide margin both the most-used and most successful form of marketing content in 2025, and that it was the format in which marketers planned to invest the most this year.
All that said, there are glimmers of a bigger shift beginning to happen. Fed up with the algorithm, some users are starting to demand the return of friends and family in social media. But more broadly, more and more young people are deciding to put down their phones, resist the invasion of AI into their lives, and look for different kinds of entertainment. Movie theaters are having a big year; one of the year’s most exciting new phones is a flip phone. As long as we live in this era of social media and entertainment, vertical video is going to win. It would take a cultural revolution to stop it — and there might just be one brewing.
The best way to understand TikTok, Instagram, and Snapchat in particular right now is as a combination of two things: a streaming service and an inbox. Studies have found that the most popular thing to do is watch videos, and the second most popular thing is to send videos to someone else. Actually posting? Way down the list. (YouTube, by the way, is desperately trying to make DMs happen.)
If you’ve made it this far and you’re thinking, no way, you’re way overstating it? I’m so sorry to say this, but you might just be old. At this point, YouTube and Facebook cross generations and demographics, but Pew and others have found that TikTok, Snapchat, and Instagram are effectively ubiquitous among young people in particular.
It’s important to remember that views are lies. Everyone on the internet has an incentive to make their platform seem big and vibrant and popular, and they will invent whatever new metrics they need to do so.
New York published a great piece earlier this year about the shifting vibes on YouTube, and the ways in which the creator economy is being unmoored in part by the shift to vertical video. Yeah, the platforms have figured out how to make money from your video feed, but it’s not as simple for creators.
All the way back in 2015, The New York Times’ Farhad Manjoo made a good case for vertical video. It’s a fun reminder of just how contentious the idea was!
You should read my colleague Mia Sato’s story on the clip economy, which turns shows, movies, podcasts, and more into bite-size pieces for social platforms. It’s a weird industry, but it works — and you can see why the streamers want to compete.
Here’s a really good breakdown of all the things TikTok got right, from its algorithm to its whole approach to content. Every bit of it has been copied relentlessly ever since.
Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.
This is The Stepback, a weekly newsletter breaking down one essential story from the tech world. For more on all things vertical video, follow David Pierce. The Stepback arrives in our subscribers’ inboxes on Sunday at 8AM ET. Opt in for The Stepbackhere.
For a while, every social and media platform had its own identity. YouTube was for clips of TV shows and movies, and the home of so many members of a burgeoning creator community. Instagram was mostly pictures. Netflix was trying to be the on-demand HBO. Facebook was about friends. Twitter was about news. Snapchat was a messaging app.
All these apps did have one important thing in common, though: They were growing up alongside the smartphone. Billions of new people were coming online for the first time, and they began to make content that made sense for the tall, skinny new devices in their hands. Selfies were a vertical art form, both because the photos filled the screen better and because it was just easier to hold the phone and take the photo that way. Some resisted the idea of vertical video for years — they’d argue that our eyes are meant to scan horizontally rather than vertically, and that vertical video looked bad on widescreen laptops. But ultimately phones won, and we hold our phones upright, so our phone experiences turned upright. That includes entertainment.
As has been true so many times, Snap figured this out before anyone. It launched Stories in late 2013 as a slightly more relaxed way to see what your friends are up to. CEO Evan Spiegel called it a “totally new way to share your day with friends — or everyone.” It took off in a massive way, and by the middle of 2014 was the most popular feature on Snapchat. That’s the kind of virality that Mark Zuckerberg tends to notice, and by August of 2016, the feature had been copied more or less exactly into Instagram. Kevin Systrom, then the CEO of Instagram, said of Spiegel and Snapchat that “they deserve all the credit” for Stories. The implication? That this was no longer a proprietary feature of a single social network; it was just in the air. Stories were for everyone. They started showing up on LinkedIn, Tinder, Medium, and so many other places.
Stories weren’t always video, but as cameras and upload speeds improved, video became the dominant medium in many ephemeral spaces. And video stories had two semi-magical properties: They were perfectly suited to endless, mindless scrolling, and they made it really easy to integrate ads. Only a few months after turning on Stories in Instagram, by which point half the platform’s users were already using Stories, Facebook began flooding ads into the product. The semi-randomness of Stories made ads actually seem less intrusive — you’d see a photo of a dog, a video of a hike, an ad for jeans, your friend’s makeup routine, brunch pics, an ad for blush. Video ads felt more premium, took up the whole screen, and were thus far more lucrative for the social platforms.
With apologies to the short, brilliant life of Vine, the six-second video platform that helped invent so much about the video-first social network, it wasn’t until TikTok took off that things really turned again. The platform launched in the US in 2018, but had been popular for a few years in China as Douyin and elsewhere as Musical.ly. TikTok combined the vertical-first format of Stories with the permanence of YouTube, but it also made video easier than ever. It had filters like Instagram and Snapchat, but also supplied a steady stream of video ideas through the platform’s many trends, offered access to music and sound effects, and made it easy to stitch or duet a video.
By defaulting to the purely algorithmic For You page, TikTok also freed creators from caring about curating their profile or worrying about posting too much — you could just pump out videos and trust the algorithm to deliver them. And so that’s what people did. Pretty quickly, TikTok became one of the fastest growing apps on the planet, and its daily usage numbers became the envy of the industry. Instagram may have had more users, but TikTok users spent far more time TikToking.
When TikTok became a phenomenon, just about everyone jumped on the vertical video bandwagon. Reels launched in 2020 and became a core feature of both Instagram and Facebook; YouTube created Shorts a year later. By the end of 2021, Twitter had both launched and killed a similar feature called Fleets. By this point, this kind of full-screen, vertical-scrolling video was part of the lingua franca of the smartphone. At the same time, in a search for ever more engagement, these platforms were learning another lesson from TikTok: to stop relying on your friends to post interesting content, and instead to show you whatever the algorithm thinks you might like. Social networks were gone, replaced by social media — entertainment with a comments section.
Short-form, vertical video has effectively won the internet. Business is booming, and viewers show no sign of tuning out. Meta said in 2024 that Instagram users were spending more than half their time in Reels, and said in 2025 the feature was turning into a $50 billion annual business across Meta’s apps. About 63 percent of young adults and teens are on TikTok, per Pew Research Center, and one in five teens reported being on the app “almost constantly.” YouTube reported 200 billion daily views of Shorts at the end of 2025, and said that Shorts earned more money per watch hour than standard YouTube videos.
The last three or four years have been about relentless standardization in social media. The pace with which these products copy each other, and regress back toward parity, has been absolutely astonishing. First, Shorts and Reels both aped TikTok’s design, its duetting and stitching, and its close relationship with sounds and music. Then they bought into TikTok’s idea of prioritizing content over connection — followers are dead, long live the algorithm. TikTok pushed hard into shopping, then suddenly Reels and Shorts became a lot more shoppable. YouTube began to grow on TVs, and suddenly TikTok and Instagram started investing in its own TV apps. Videos got longer and longer across platforms, to allow more ads. All the apps got really into livestreaming for a while. And micro dramas. They’ve relentlessly copied each other on big things like letting users control their algorithm, and small things like Clear Mode.
As the social platforms spin endlessly around each other, they’ve gotten some surprising company. Company after company started to notice their content floating around social media platforms, often in dubiously legal ways, and tried to take some of the watch time for themselves. Spotify decided it, too, wanted to be a video service, and built a vertical-scrolling feed for users to explore. Disney built a TikTok clone for ESPN and another for Disney Plus, both called Verts. Netflix, Prime Video, and Paramount Plus all called their clones Clips.
There are two reasons for the ongoing onslaught of short-form vertical video: time spent and advertising. The endlessly scrolling video feed turns out to be one of the most engrossing forms of entertainment ever devised (to the point that it has become a regulatory problem for the social platforms), and in a relentless competition for eyeballs and attention, it has become everyone’s best idea. In 2024, when Meta switched its default video player to a vertical-first layout across all platforms, the race was officially won.
Meanwhile, as those platforms have captured more of our time and attention, short-form video has become a dominant force of advertising on the internet, which means advertisers are already comfortable making ads designed to go between videos in the feed. And as so many companies turn to AI to do their ad targeting, all they really need is the creative to get started. “So long as clients give us different assets — a six-second ad, a 15-second ad, a long-format, a vertical ad — AI is essentially powering everything else,” YouTube’s Brian Albert told me last year. “From the audiences you’re reaching, to the contextual placements, to the ad that’s actually showing.” The combination of AI and vertical video has become a self-fulfilling prophecy: The more it wins, the easier it becomes for everyone else to get on board, and so it just keeps winning.
Vertical video haters, I have bad news: It’s only going to get worse. TikTok, YouTube, and Instagram are if anything going to become more short-form and vertical, since those short videos are easier to make and easier to load into endlessly scrolling feeds. Video services used to require you to pick something and press play, but now all they need is for you to open the app and they can start showing you ads. They’re not going to want to go back. Here’s how dominant video is: Facebook is testing a new version of the app that loads a full-screen video feed when you open the app. If that happens, there will be no Facebook — only Reels. After all this time, they’ve trained users to want and expect this kind of fast-paced, instant-gratification entertainment, to the point where even a full-length movie can feel like a chore.
Meanwhile, after years of raising prices, streaming services around the world are hoping they can turn to advertising to keep growing. For a while, they could coast on the back of linear TV, borrowing those ads to run on digital platforms. But a TikTok ad won’t make any sense on Netflix, so Netflix decided the best thing to do is build something that looks more like TikTok. A recent HubSpot report found that short-form video was by a wide margin both the most-used and most successful form of marketing content in 2025, and that it was the format in which marketers planned to invest the most this year.
All that said, there are glimmers of a bigger shift beginning to happen. Fed up with the algorithm, some users are starting to demand the return of friends and family in social media. But more broadly, more and more young people are deciding to put down their phones, resist the invasion of AI into their lives, and look for different kinds of entertainment. Movie theaters are having a big year; one of the year’s most exciting new phones is a flip phone. As long as we live in this era of social media and entertainment, vertical video is going to win. It would take a cultural revolution to stop it — and there might just be one brewing.
The best way to understand TikTok, Instagram, and Snapchat in particular right now is as a combination of two things: a streaming service and an inbox. Studies have found that the most popular thing to do is watch videos, and the second most popular thing is to send videos to someone else. Actually posting? Way down the list. (YouTube, by the way, is desperately trying to make DMs happen.)
If you’ve made it this far and you’re thinking, no way, you’re way overstating it? I’m so sorry to say this, but you might just be old. At this point, YouTube and Facebook cross generations and demographics, but Pew and others have found that TikTok, Snapchat, and Instagram are effectively ubiquitous among young people in particular.
It’s important to remember that views are lies. Everyone on the internet has an incentive to make their platform seem big and vibrant and popular, and they will invent whatever new metrics they need to do so.
New York published a great piece earlier this year about the shifting vibes on YouTube, and the ways in which the creator economy is being unmoored in part by the shift to vertical video. Yeah, the platforms have figured out how to make money from your video feed, but it’s not as simple for creators.
All the way back in 2015, The New York Times’ Farhad Manjoo made a good case for vertical video. It’s a fun reminder of just how contentious the idea was!
You should read my colleague Mia Sato’s story on the clip economy, which turns shows, movies, podcasts, and more into bite-size pieces for social platforms. It’s a weird industry, but it works — and you can see why the streamers want to compete.
Here’s a really good breakdown of all the things TikTok got right, from its algorithm to its whole approach to content. Every bit of it has been copied relentlessly ever since.
Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.
David Pierce
#vertical #video #takeoverColumn,Creators,Facebook,Instagram,Meta,Social Media,Streaming,Tech,The Stepback,TikTok,YouTube">The vertical video takeover is here
This is The Stepback, a weekly newsletter breaking down one essential story from the tech world. For more on all things vertical video, follow David Pierce. The Stepback arrives in our subscribers’ inboxes on Sunday at 8AM ET. Opt in for The Stepbackhere.
For a while, every social and media platform had its own identity. YouTube was for clips of TV shows and movies, and the home of so many members of a burgeoning creator community. Instagram was mostly pictures. Netflix was trying to be the on-demand HBO. Facebook was about friends. Twitter was about news. Snapchat was a messaging app.
All these apps did have one important thing in common, though: They were growing up alongside the smartphone. Billions of new people were coming online for the first time, and they began to make content that made sense for the tall, skinny new devices in their hands. Selfies were a vertical art form, both because the photos filled the screen better and because it was just easier to hold the phone and take the photo that way. Some resisted the idea of vertical video for years — they’d argue that our eyes are meant to scan horizontally rather than vertically, and that vertical video looked bad on widescreen laptops. But ultimately phones won, and we hold our phones upright, so our phone experiences turned upright. That includes entertainment.
As has been true so many times, Snap figured this out before anyone. It launched Stories in late 2013 as a slightly more relaxed way to see what your friends are up to. CEO Evan Spiegel called it a “totally new way to share your day with friends — or everyone.” It took off in a massive way, and by the middle of 2014 was the most popular feature on Snapchat. That’s the kind of virality that Mark Zuckerberg tends to notice, and by August of 2016, the feature had been copied more or less exactly into Instagram. Kevin Systrom, then the CEO of Instagram, said of Spiegel and Snapchat that “they deserve all the credit” for Stories. The implication? That this was no longer a proprietary feature of a single social network; it was just in the air. Stories were for everyone. They started showing up on LinkedIn, Tinder, Medium, and so many other places.
Stories weren’t always video, but as cameras and upload speeds improved, video became the dominant medium in many ephemeral spaces. And video stories had two semi-magical properties: They were perfectly suited to endless, mindless scrolling, and they made it really easy to integrate ads. Only a few months after turning on Stories in Instagram, by which point half the platform’s users were already using Stories, Facebook began flooding ads into the product. The semi-randomness of Stories made ads actually seem less intrusive — you’d see a photo of a dog, a video of a hike, an ad for jeans, your friend’s makeup routine, brunch pics, an ad for blush. Video ads felt more premium, took up the whole screen, and were thus far more lucrative for the social platforms.
With apologies to the short, brilliant life of Vine, the six-second video platform that helped invent so much about the video-first social network, it wasn’t until TikTok took off that things really turned again. The platform launched in the US in 2018, but had been popular for a few years in China as Douyin and elsewhere as Musical.ly. TikTok combined the vertical-first format of Stories with the permanence of YouTube, but it also made video easier than ever. It had filters like Instagram and Snapchat, but also supplied a steady stream of video ideas through the platform’s many trends, offered access to music and sound effects, and made it easy to stitch or duet a video.
By defaulting to the purely algorithmic For You page, TikTok also freed creators from caring about curating their profile or worrying about posting too much — you could just pump out videos and trust the algorithm to deliver them. And so that’s what people did. Pretty quickly, TikTok became one of the fastest growing apps on the planet, and its daily usage numbers became the envy of the industry. Instagram may have had more users, but TikTok users spent far more time TikToking.
When TikTok became a phenomenon, just about everyone jumped on the vertical video bandwagon. Reels launched in 2020 and became a core feature of both Instagram and Facebook; YouTube created Shorts a year later. By the end of 2021, Twitter had both launched and killed a similar feature called Fleets. By this point, this kind of full-screen, vertical-scrolling video was part of the lingua franca of the smartphone. At the same time, in a search for ever more engagement, these platforms were learning another lesson from TikTok: to stop relying on your friends to post interesting content, and instead to show you whatever the algorithm thinks you might like. Social networks were gone, replaced by social media — entertainment with a comments section.
Short-form, vertical video has effectively won the internet. Business is booming, and viewers show no sign of tuning out. Meta said in 2024 that Instagram users were spending more than half their time in Reels, and said in 2025 the feature was turning into a $50 billion annual business across Meta’s apps. About 63 percent of young adults and teens are on TikTok, per Pew Research Center, and one in five teens reported being on the app “almost constantly.” YouTube reported 200 billion daily views of Shorts at the end of 2025, and said that Shorts earned more money per watch hour than standard YouTube videos.
The last three or four years have been about relentless standardization in social media. The pace with which these products copy each other, and regress back toward parity, has been absolutely astonishing. First, Shorts and Reels both aped TikTok’s design, its duetting and stitching, and its close relationship with sounds and music. Then they bought into TikTok’s idea of prioritizing content over connection — followers are dead, long live the algorithm. TikTok pushed hard into shopping, then suddenly Reels and Shorts became a lot more shoppable. YouTube began to grow on TVs, and suddenly TikTok and Instagram started investing in its own TV apps. Videos got longer and longer across platforms, to allow more ads. All the apps got really into livestreaming for a while. And micro dramas. They’ve relentlessly copied each other on big things like letting users control their algorithm, and small things like Clear Mode.
As the social platforms spin endlessly around each other, they’ve gotten some surprising company. Company after company started to notice their content floating around social media platforms, often in dubiously legal ways, and tried to take some of the watch time for themselves. Spotify decided it, too, wanted to be a video service, and built a vertical-scrolling feed for users to explore. Disney built a TikTok clone for ESPN and another for Disney Plus, both called Verts. Netflix, Prime Video, and Paramount Plus all called their clones Clips.
There are two reasons for the ongoing onslaught of short-form vertical video: time spent and advertising. The endlessly scrolling video feed turns out to be one of the most engrossing forms of entertainment ever devised (to the point that it has become a regulatory problem for the social platforms), and in a relentless competition for eyeballs and attention, it has become everyone’s best idea. In 2024, when Meta switched its default video player to a vertical-first layout across all platforms, the race was officially won.
Meanwhile, as those platforms have captured more of our time and attention, short-form video has become a dominant force of advertising on the internet, which means advertisers are already comfortable making ads designed to go between videos in the feed. And as so many companies turn to AI to do their ad targeting, all they really need is the creative to get started. “So long as clients give us different assets — a six-second ad, a 15-second ad, a long-format, a vertical ad — AI is essentially powering everything else,” YouTube’s Brian Albert told me last year. “From the audiences you’re reaching, to the contextual placements, to the ad that’s actually showing.” The combination of AI and vertical video has become a self-fulfilling prophecy: The more it wins, the easier it becomes for everyone else to get on board, and so it just keeps winning.
Vertical video haters, I have bad news: It’s only going to get worse. TikTok, YouTube, and Instagram are if anything going to become more short-form and vertical, since those short videos are easier to make and easier to load into endlessly scrolling feeds. Video services used to require you to pick something and press play, but now all they need is for you to open the app and they can start showing you ads. They’re not going to want to go back. Here’s how dominant video is: Facebook is testing a new version of the app that loads a full-screen video feed when you open the app. If that happens, there will be no Facebook — only Reels. After all this time, they’ve trained users to want and expect this kind of fast-paced, instant-gratification entertainment, to the point where even a full-length movie can feel like a chore.
Meanwhile, after years of raising prices, streaming services around the world are hoping they can turn to advertising to keep growing. For a while, they could coast on the back of linear TV, borrowing those ads to run on digital platforms. But a TikTok ad won’t make any sense on Netflix, so Netflix decided the best thing to do is build something that looks more like TikTok. A recent HubSpot report found that short-form video was by a wide margin both the most-used and most successful form of marketing content in 2025, and that it was the format in which marketers planned to invest the most this year.
All that said, there are glimmers of a bigger shift beginning to happen. Fed up with the algorithm, some users are starting to demand the return of friends and family in social media. But more broadly, more and more young people are deciding to put down their phones, resist the invasion of AI into their lives, and look for different kinds of entertainment. Movie theaters are having a big year; one of the year’s most exciting new phones is a flip phone. As long as we live in this era of social media and entertainment, vertical video is going to win. It would take a cultural revolution to stop it — and there might just be one brewing.
The best way to understand TikTok, Instagram, and Snapchat in particular right now is as a combination of two things: a streaming service and an inbox. Studies have found that the most popular thing to do is watch videos, and the second most popular thing is to send videos to someone else. Actually posting? Way down the list. (YouTube, by the way, is desperately trying to make DMs happen.)
If you’ve made it this far and you’re thinking, no way, you’re way overstating it? I’m so sorry to say this, but you might just be old. At this point, YouTube and Facebook cross generations and demographics, but Pew and others have found that TikTok, Snapchat, and Instagram are effectively ubiquitous among young people in particular.
It’s important to remember that views are lies. Everyone on the internet has an incentive to make their platform seem big and vibrant and popular, and they will invent whatever new metrics they need to do so.
New York published a great piece earlier this year about the shifting vibes on YouTube, and the ways in which the creator economy is being unmoored in part by the shift to vertical video. Yeah, the platforms have figured out how to make money from your video feed, but it’s not as simple for creators.
All the way back in 2015, The New York Times’ Farhad Manjoo made a good case for vertical video. It’s a fun reminder of just how contentious the idea was!
You should read my colleague Mia Sato’s story on the clip economy, which turns shows, movies, podcasts, and more into bite-size pieces for social platforms. It’s a weird industry, but it works — and you can see why the streamers want to compete.
Here’s a really good breakdown of all the things TikTok got right, from its algorithm to its whole approach to content. Every bit of it has been copied relentlessly ever since.
Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.
Co-founder Eran Zinman told employees in a LinkedIn memo that the move “was not made to reduce costs or replace people with AI,” positioning it instead as adapting the organization to a new AI-first vision the company laid out roughly a year ago when it rebranded around a platform-wide AI push. Monday.com, which has two offices in the U.S., expects $45 million to $55 million in net restructuring charges but still projects up to 20% year-over-year revenue growth for 2026.
So far, according to new Financial Times analysis, U.S. tech companies have slashed nearly 140,000 jobs since the start of this year, with Amazon, Oracle, Meta, and Microsoft alone accounting for almost 50,000 of those cuts as they funnel hundreds of billions of dollars into AI data center buildouts. Interestingly, the FT also found that companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, suggesting the market doesn’t entirely buy the stories that the companies are telling.
Still, the picture isn’t uniformly bleak. The FT notes that AI-focused companies like Anthropic and OpenAI are hiring rapidly, absorbing some of the talent shed elsewhere in the industry. And within some of the very companies making cuts, headcount is shifting rather than disappearing entirely. Meta, for instance, earlier this year moved roughly 7,000 employees into new AI-focused roles even as it laid off 8,000 others, and IBM says it’s tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts.
Below is a running look — in reverse chronological order — at the bigger tech companies that have announced significant layoffs this year with AI as a stated factor.
Microsoft — July 9, 2026. Microsoft cut about 4,800 roles, or 2.1% of its global workforce, most of them in its Xbox gaming unit, resetting the business only three years after acquiring Activision Blizzard for $75 billion, per the FT. Separately, it offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. The company said the role eliminations were “not being replaced by AI” but acknowledged “AI is changing how work gets done.” CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and was expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
Oracle — June 22, 2026. Oracle disclosed in late June that it had reduced its workforce by 21,000 employees over the past 12 months, a decline of 13%, which means more cuts than was previously known, including because of AI. “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” the company said in an annual financial regulatory filing.
GitLab — June 3, 2026. GitLab laid off roughly 350 workers, about 14% of its staff, to fund AI infrastructure investment and handle surging traffic from AI workflows. CEO Bill Staples said agentic workloads are “pushing competitors to the brink” and that the company had begun a “generational rebuild” of its core infrastructure to support what he called 100x growth requirements. GitLab is exiting 22 countries, flattening management layers, and partnering with an unspecified AI lab to rebuild its platform for agent-scale workloads. The company reported first-quarter revenue of $264 million, up 23% year-over-year, and expects to incur $30 to $35 million in restructuring costs.
Google — ongoing through May. Alphabet’s Google has quietly cut employees across its Cloud division, including its Threat Intelligence Group and Mandiant-linked cybersecurity staff, even as Cloud revenue grew 63% to exceed $20 billion for the first time and its backlog nearly doubled to over $460 billion. Over the past year, Google has cut more than a third of the managers overseeing small teams — 35% fewer managers with fewer direct reports. Unlike most companies on this list, Google has never announced a single overall number — the cuts have come through a rolling performance review process, a voluntary buyout program, and structural reorganizations, with outside estimates putting the 2026 total at between 1,500 and 3,000+ engineers.
Intuit — May 20, 2026. Intuit announced plans to eliminate roughly 3,000 jobs — about 17% of its total workforce — in a restructuring centered on reducing complexity and reallocating resources toward AI. CEO Sasan Goodarzi reportedly told staff the company is reducing complexity and simplifying the structure so it can deliver better products.
Meta — May 20-21, 2026. Meta laid off about 8,000 employees, roughly 10% of its workforce, while moving about 7,000 employees into new AI-focused roles (that they reportedly hate). CEO Mark Zuckerberg told staff the cuts were necessary because “success isn’t a given” in AI.
Cisco — May 14, 2026. Cisco announced it’s cutting nearly 4,000 jobs, about 5% of its workforce, despite reporting better-than-expected profit and revenue. CFO Mark Patterson said: “This was really not a savings-driven restructure… this is more [about] realigning … resources around silicon, optics, security and AI.”
Cloudflare — May 7-8, 2026. Cloudflare cut about 20% of its workforce (1,100 people), reporting quarterly revenue of $639.8 million, up 34% year-over-year and the highest single quarter in company history. CEO Matthew Prince wrote that “the vast majority of those we laid off last week were measurers” — middle management, finance, legal, internal auditing, and revenue recognition.
General Motors — May 12, 2026. GM eliminated 500 to 600 jobs, largely in IT roles in Austin, Texas, and Warren, Michigan, saying it was reevaluating its workforce needs amid uncertain market conditions. A person familiar with the cuts told CNBC that AI played a role in the decision but that it wasn’t the only reason. GM’s statement said it was “transforming its Information Technology organization to better position the company for the future.” Despite the cuts, the company still had roughly 80 open IT positions, including roles in AI, motorsports, and autonomous vehicles.
Coinbase — May 5, 2026. The crypto exchange said it was cutting about 700 employees, or 14% of its staff, as part of a restructuring aimed at addressing market volatility and increasing AI efficiency. The company flattened its organizational structure to five layers below the CEO and COO, and said it would experiment with “one-person teams” combining engineering, design, and product roles. CEO Brian Armstrong wrote that AI had changed the pace of work dramatically — “engineers use AI to ship in days what used to take a team weeks” — and that the company needed to “leverage AI across every facet of our jobs.”
PayPal — May 5, 2026. PayPal announced plans to cut around 20% of its workforce over the next two to three years — north of 4,500 jobs — as part of a turnaround strategy centered on AI adoption and organizational simplification. CEO Enrique Lores told investors the company would “aggressively adopt AI” in its development processes and formed a new “AI transformation and simplification” team reporting directly to him, tasked with redesigning the company’s processes “function by function.” Lores framed the cuts as removing organizational layers, and said AI would extend well beyond coding into customer service, support operations, and risk management.
Microsoft — April-May 2026. Microsoft offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and is expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
Snap — April 16, 2026. Snap cut roughly 16% of its global workforce — about 1,000 full-time employees — and closed more than 300 open roles, with CEO Evan Spiegel citing AI advancements as a key driver. “Rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” Spiegel wrote in a memo filed with the SEC. The company said it had already seen small squads using AI tools to drive progress across Snapchat+, ad platform performance, and infrastructure efficiency.
IBM — rolling through 2026. Between Q4 2025 cuts and April 2026 Red Hat engineering reductions, estimates range from 3,000 to 9,000 U.S. positions eliminated, bringing IBM’s cumulative total since September 2024 above 15,000. Bloomberg reported IBM plans to triple its U.S. entry-level hiring for AI and hybrid-cloud roles, even as roughly 200 HR positions were replaced by AI agents. An IBM spokesperson described the Q4 2025 round as a routine rebalancing affecting “a low single-digit percentage” of its global workforce.
Atlassian — March 11, 2026. Atlassian cut about 1,600 jobs (10% of its workforce) to “rebalance” toward AI and enterprise sales, even as shares rose nearly 2% on the news. CEO Mike Cannon-Brookes said: “Our approach is not ‘AI replaces people.’ But it would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas. It does.”
Dell — January 30 (though disclosed in March 2026). Dell’s total workforce fell about 10% in fiscal 2026 — roughly 11,000 jobs — to about 97,000 employees from 108,000 a year earlier, with $569 million spent on severance. The cuts came as Dell projected its AI-optimized server revenue could double in fiscal 2027.
Oracle — March 5-31, 2026. As noted above, Oracle began telling employees it would be cutting thousands of jobs via terminal emails. The cuts came even as Oracle posted $3.7 billion in quarterly net income, up 27% year-over-year, with remaining performance obligations up 325% to $553 billion — savings redirected toward AI data centers. The cuts that would later total 21,000 over 12 months, as Oracle disclosed in its June 22 annual filing.
Block — February 26-27, 2026. Jack Dorsey’s Block cut 4,000 jobs — nearly half its workforce, down to under 6,000 from over 10,000. Dorsey wrote on X: “We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company.” He added: “I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.”
Salesforce — February 10, 2026. Salesforce laid off fewer than 1,000 employees across marketing, product management, data analytics, and its Agentforce AI unit. The company told Fortune, “Because of the benefits and efficiencies of Agentforce, we’ve seen the number of support cases we handle decline and we no longer need to actively backfill support engineer roles.” This followed an earlier cut of about 4,000 customer-support roles, shrinking that team from roughly 9,000 to 5,000, with CEO Marc Benioff saying the company needed “less heads” because AI agents handle the work.
Amazon — January 28, 2026. Amazon cut 16,000 corporate jobs, following 14,000 cuts in October 2025 — about 9% of its corporate workforce in three months. The company said it was part of “strengthen[ing] our organization by reducing layers, increasing ownership, and removing bureaucracy.” CEO Andy Jassy had said in June 2025 that, “As we roll out more generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today… in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Co-founder Eran Zinman told employees in a LinkedIn memo that the move “was not made to reduce costs or replace people with AI,” positioning it instead as adapting the organization to a new AI-first vision the company laid out roughly a year ago when it rebranded around a platform-wide AI push. Monday.com, which has two offices in the U.S., expects $45 million to $55 million in net restructuring charges but still projects up to 20% year-over-year revenue growth for 2026.
So far, according to new Financial Times analysis, U.S. tech companies have slashed nearly 140,000 jobs since the start of this year, with Amazon, Oracle, Meta, and Microsoft alone accounting for almost 50,000 of those cuts as they funnel hundreds of billions of dollars into AI data center buildouts. Interestingly, the FT also found that companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, suggesting the market doesn’t entirely buy the stories that the companies are telling.
Still, the picture isn’t uniformly bleak. The FT notes that AI-focused companies like Anthropic and OpenAI are hiring rapidly, absorbing some of the talent shed elsewhere in the industry. And within some of the very companies making cuts, headcount is shifting rather than disappearing entirely. Meta, for instance, earlier this year moved roughly 7,000 employees into new AI-focused roles even as it laid off 8,000 others, and IBM says it’s tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts.
Below is a running look — in reverse chronological order — at the bigger tech companies that have announced significant layoffs this year with AI as a stated factor.
Microsoft — July 9, 2026. Microsoft cut about 4,800 roles, or 2.1% of its global workforce, most of them in its Xbox gaming unit, resetting the business only three years after acquiring Activision Blizzard for $75 billion, per the FT. Separately, it offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. The company said the role eliminations were “not being replaced by AI” but acknowledged “AI is changing how work gets done.” CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and was expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
Oracle — June 22, 2026. Oracle disclosed in late June that it had reduced its workforce by 21,000 employees over the past 12 months, a decline of 13%, which means more cuts than was previously known, including because of AI. “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” the company said in an annual financial regulatory filing.
GitLab — June 3, 2026. GitLab laid off roughly 350 workers, about 14% of its staff, to fund AI infrastructure investment and handle surging traffic from AI workflows. CEO Bill Staples said agentic workloads are “pushing competitors to the brink” and that the company had begun a “generational rebuild” of its core infrastructure to support what he called 100x growth requirements. GitLab is exiting 22 countries, flattening management layers, and partnering with an unspecified AI lab to rebuild its platform for agent-scale workloads. The company reported first-quarter revenue of $264 million, up 23% year-over-year, and expects to incur $30 to $35 million in restructuring costs.
Google — ongoing through May. Alphabet’s Google has quietly cut employees across its Cloud division, including its Threat Intelligence Group and Mandiant-linked cybersecurity staff, even as Cloud revenue grew 63% to exceed $20 billion for the first time and its backlog nearly doubled to over $460 billion. Over the past year, Google has cut more than a third of the managers overseeing small teams — 35% fewer managers with fewer direct reports. Unlike most companies on this list, Google has never announced a single overall number — the cuts have come through a rolling performance review process, a voluntary buyout program, and structural reorganizations, with outside estimates putting the 2026 total at between 1,500 and 3,000+ engineers.
Intuit — May 20, 2026. Intuit announced plans to eliminate roughly 3,000 jobs — about 17% of its total workforce — in a restructuring centered on reducing complexity and reallocating resources toward AI. CEO Sasan Goodarzi reportedly told staff the company is reducing complexity and simplifying the structure so it can deliver better products.
Meta — May 20-21, 2026. Meta laid off about 8,000 employees, roughly 10% of its workforce, while moving about 7,000 employees into new AI-focused roles (that they reportedly hate). CEO Mark Zuckerberg told staff the cuts were necessary because “success isn’t a given” in AI.
Cisco — May 14, 2026. Cisco announced it’s cutting nearly 4,000 jobs, about 5% of its workforce, despite reporting better-than-expected profit and revenue. CFO Mark Patterson said: “This was really not a savings-driven restructure… this is more [about] realigning … resources around silicon, optics, security and AI.”
Cloudflare — May 7-8, 2026. Cloudflare cut about 20% of its workforce (1,100 people), reporting quarterly revenue of $639.8 million, up 34% year-over-year and the highest single quarter in company history. CEO Matthew Prince wrote that “the vast majority of those we laid off last week were measurers” — middle management, finance, legal, internal auditing, and revenue recognition.
General Motors — May 12, 2026. GM eliminated 500 to 600 jobs, largely in IT roles in Austin, Texas, and Warren, Michigan, saying it was reevaluating its workforce needs amid uncertain market conditions. A person familiar with the cuts told CNBC that AI played a role in the decision but that it wasn’t the only reason. GM’s statement said it was “transforming its Information Technology organization to better position the company for the future.” Despite the cuts, the company still had roughly 80 open IT positions, including roles in AI, motorsports, and autonomous vehicles.
Coinbase — May 5, 2026. The crypto exchange said it was cutting about 700 employees, or 14% of its staff, as part of a restructuring aimed at addressing market volatility and increasing AI efficiency. The company flattened its organizational structure to five layers below the CEO and COO, and said it would experiment with “one-person teams” combining engineering, design, and product roles. CEO Brian Armstrong wrote that AI had changed the pace of work dramatically — “engineers use AI to ship in days what used to take a team weeks” — and that the company needed to “leverage AI across every facet of our jobs.”
PayPal — May 5, 2026. PayPal announced plans to cut around 20% of its workforce over the next two to three years — north of 4,500 jobs — as part of a turnaround strategy centered on AI adoption and organizational simplification. CEO Enrique Lores told investors the company would “aggressively adopt AI” in its development processes and formed a new “AI transformation and simplification” team reporting directly to him, tasked with redesigning the company’s processes “function by function.” Lores framed the cuts as removing organizational layers, and said AI would extend well beyond coding into customer service, support operations, and risk management.
Microsoft — April-May 2026. Microsoft offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and is expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
Snap — April 16, 2026. Snap cut roughly 16% of its global workforce — about 1,000 full-time employees — and closed more than 300 open roles, with CEO Evan Spiegel citing AI advancements as a key driver. “Rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” Spiegel wrote in a memo filed with the SEC. The company said it had already seen small squads using AI tools to drive progress across Snapchat+, ad platform performance, and infrastructure efficiency.
IBM — rolling through 2026. Between Q4 2025 cuts and April 2026 Red Hat engineering reductions, estimates range from 3,000 to 9,000 U.S. positions eliminated, bringing IBM’s cumulative total since September 2024 above 15,000. Bloomberg reported IBM plans to triple its U.S. entry-level hiring for AI and hybrid-cloud roles, even as roughly 200 HR positions were replaced by AI agents. An IBM spokesperson described the Q4 2025 round as a routine rebalancing affecting “a low single-digit percentage” of its global workforce.
Atlassian — March 11, 2026. Atlassian cut about 1,600 jobs (10% of its workforce) to “rebalance” toward AI and enterprise sales, even as shares rose nearly 2% on the news. CEO Mike Cannon-Brookes said: “Our approach is not ‘AI replaces people.’ But it would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas. It does.”
Dell — January 30 (though disclosed in March 2026). Dell’s total workforce fell about 10% in fiscal 2026 — roughly 11,000 jobs — to about 97,000 employees from 108,000 a year earlier, with $569 million spent on severance. The cuts came as Dell projected its AI-optimized server revenue could double in fiscal 2027.
Oracle — March 5-31, 2026. As noted above, Oracle began telling employees it would be cutting thousands of jobs via terminal emails. The cuts came even as Oracle posted $3.7 billion in quarterly net income, up 27% year-over-year, with remaining performance obligations up 325% to $553 billion — savings redirected toward AI data centers. The cuts that would later total 21,000 over 12 months, as Oracle disclosed in its June 22 annual filing.
Block — February 26-27, 2026. Jack Dorsey’s Block cut 4,000 jobs — nearly half its workforce, down to under 6,000 from over 10,000. Dorsey wrote on X: “We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company.” He added: “I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.”
Salesforce — February 10, 2026. Salesforce laid off fewer than 1,000 employees across marketing, product management, data analytics, and its Agentforce AI unit. The company told Fortune, “Because of the benefits and efficiencies of Agentforce, we’ve seen the number of support cases we handle decline and we no longer need to actively backfill support engineer roles.” This followed an earlier cut of about 4,000 customer-support roles, shrinking that team from roughly 9,000 to 5,000, with CEO Marc Benioff saying the company needed “less heads” because AI agents handle the work.
Amazon — January 28, 2026. Amazon cut 16,000 corporate jobs, following 14,000 cuts in October 2025 — about 9% of its corporate workforce in three months. The company said it was part of “strengthen[ing] our organization by reducing layers, increasing ownership, and removing bureaucracy.” CEO Andy Jassy had said in June 2025 that, “As we roll out more generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today… in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
#Monday.com #latest #tech #company #blame #layoffs #TechCrunchAI,Layoffs">Monday.com is the latest tech company to blame AI for layoffs — here are 20 others | TechCrunch
Monday.com, the Tel Aviv-based work management software company known for its colorful, customizable project-tracking boards, this week became the latest tech company to cite AI as a factor in job cuts. On Wednesday, the company said in an SEC filing that it will lay off about 20% of its workforce, or just over 600 employees, as part of a “restructuring plan” tied to its “ongoing transformation of its product, marketing, and go-to-market strategy” in support of “a leaner, more focused operating model” as it continues investing in its “AI-driven growth strategy.”
Co-founder Eran Zinman told employees in a LinkedIn memo that the move “was not made to reduce costs or replace people with AI,” positioning it instead as adapting the organization to a new AI-first vision the company laid out roughly a year ago when it rebranded around a platform-wide AI push. Monday.com, which has two offices in the U.S., expects $45 million to $55 million in net restructuring charges but still projects up to 20% year-over-year revenue growth for 2026.
So far, according to new Financial Times analysis, U.S. tech companies have slashed nearly 140,000 jobs since the start of this year, with Amazon, Oracle, Meta, and Microsoft alone accounting for almost 50,000 of those cuts as they funnel hundreds of billions of dollars into AI data center buildouts. Interestingly, the FT also found that companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, suggesting the market doesn’t entirely buy the stories that the companies are telling.
Still, the picture isn’t uniformly bleak. The FT notes that AI-focused companies like Anthropic and OpenAI are hiring rapidly, absorbing some of the talent shed elsewhere in the industry. And within some of the very companies making cuts, headcount is shifting rather than disappearing entirely. Meta, for instance, earlier this year moved roughly 7,000 employees into new AI-focused roles even as it laid off 8,000 others, and IBM says it’s tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts.
Below is a running look — in reverse chronological order — at the bigger tech companies that have announced significant layoffs this year with AI as a stated factor.
Microsoft — July 9, 2026. Microsoft cut about 4,800 roles, or 2.1% of its global workforce, most of them in its Xbox gaming unit, resetting the business only three years after acquiring Activision Blizzard for $75 billion, per the FT. Separately, it offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. The company said the role eliminations were “not being replaced by AI” but acknowledged “AI is changing how work gets done.” CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and was expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
Oracle — June 22, 2026. Oracle disclosed in late June that it had reduced its workforce by 21,000 employees over the past 12 months, a decline of 13%, which means more cuts than was previously known, including because of AI. “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” the company said in an annual financial regulatory filing.
GitLab — June 3, 2026. GitLab laid off roughly 350 workers, about 14% of its staff, to fund AI infrastructure investment and handle surging traffic from AI workflows. CEO Bill Staples said agentic workloads are “pushing competitors to the brink” and that the company had begun a “generational rebuild” of its core infrastructure to support what he called 100x growth requirements. GitLab is exiting 22 countries, flattening management layers, and partnering with an unspecified AI lab to rebuild its platform for agent-scale workloads. The company reported first-quarter revenue of $264 million, up 23% year-over-year, and expects to incur $30 to $35 million in restructuring costs.
Google — ongoing through May. Alphabet’s Google has quietly cut employees across its Cloud division, including its Threat Intelligence Group and Mandiant-linked cybersecurity staff, even as Cloud revenue grew 63% to exceed $20 billion for the first time and its backlog nearly doubled to over $460 billion. Over the past year, Google has cut more than a third of the managers overseeing small teams — 35% fewer managers with fewer direct reports. Unlike most companies on this list, Google has never announced a single overall number — the cuts have come through a rolling performance review process, a voluntary buyout program, and structural reorganizations, with outside estimates putting the 2026 total at between 1,500 and 3,000+ engineers.
Intuit — May 20, 2026. Intuit announced plans to eliminate roughly 3,000 jobs — about 17% of its total workforce — in a restructuring centered on reducing complexity and reallocating resources toward AI. CEO Sasan Goodarzi reportedly told staff the company is reducing complexity and simplifying the structure so it can deliver better products.
Meta — May 20-21, 2026. Meta laid off about 8,000 employees, roughly 10% of its workforce, while moving about 7,000 employees into new AI-focused roles (that they reportedly hate). CEO Mark Zuckerberg told staff the cuts were necessary because “success isn’t a given” in AI.
Cisco — May 14, 2026. Cisco announced it’s cutting nearly 4,000 jobs, about 5% of its workforce, despite reporting better-than-expected profit and revenue. CFO Mark Patterson said: “This was really not a savings-driven restructure… this is more [about] realigning … resources around silicon, optics, security and AI.”
Cloudflare — May 7-8, 2026. Cloudflare cut about 20% of its workforce (1,100 people), reporting quarterly revenue of $639.8 million, up 34% year-over-year and the highest single quarter in company history. CEO Matthew Prince wrote that “the vast majority of those we laid off last week were measurers” — middle management, finance, legal, internal auditing, and revenue recognition.
General Motors — May 12, 2026. GM eliminated 500 to 600 jobs, largely in IT roles in Austin, Texas, and Warren, Michigan, saying it was reevaluating its workforce needs amid uncertain market conditions. A person familiar with the cuts told CNBC that AI played a role in the decision but that it wasn’t the only reason. GM’s statement said it was “transforming its Information Technology organization to better position the company for the future.” Despite the cuts, the company still had roughly 80 open IT positions, including roles in AI, motorsports, and autonomous vehicles.
Coinbase — May 5, 2026. The crypto exchange said it was cutting about 700 employees, or 14% of its staff, as part of a restructuring aimed at addressing market volatility and increasing AI efficiency. The company flattened its organizational structure to five layers below the CEO and COO, and said it would experiment with “one-person teams” combining engineering, design, and product roles. CEO Brian Armstrong wrote that AI had changed the pace of work dramatically — “engineers use AI to ship in days what used to take a team weeks” — and that the company needed to “leverage AI across every facet of our jobs.”
PayPal — May 5, 2026. PayPal announced plans to cut around 20% of its workforce over the next two to three years — north of 4,500 jobs — as part of a turnaround strategy centered on AI adoption and organizational simplification. CEO Enrique Lores told investors the company would “aggressively adopt AI” in its development processes and formed a new “AI transformation and simplification” team reporting directly to him, tasked with redesigning the company’s processes “function by function.” Lores framed the cuts as removing organizational layers, and said AI would extend well beyond coding into customer service, support operations, and risk management.
Microsoft — April-May 2026. Microsoft offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and is expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
Snap — April 16, 2026. Snap cut roughly 16% of its global workforce — about 1,000 full-time employees — and closed more than 300 open roles, with CEO Evan Spiegel citing AI advancements as a key driver. “Rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” Spiegel wrote in a memo filed with the SEC. The company said it had already seen small squads using AI tools to drive progress across Snapchat+, ad platform performance, and infrastructure efficiency.
IBM — rolling through 2026. Between Q4 2025 cuts and April 2026 Red Hat engineering reductions, estimates range from 3,000 to 9,000 U.S. positions eliminated, bringing IBM’s cumulative total since September 2024 above 15,000. Bloomberg reported IBM plans to triple its U.S. entry-level hiring for AI and hybrid-cloud roles, even as roughly 200 HR positions were replaced by AI agents. An IBM spokesperson described the Q4 2025 round as a routine rebalancing affecting “a low single-digit percentage” of its global workforce.
Atlassian — March 11, 2026. Atlassian cut about 1,600 jobs (10% of its workforce) to “rebalance” toward AI and enterprise sales, even as shares rose nearly 2% on the news. CEO Mike Cannon-Brookes said: “Our approach is not ‘AI replaces people.’ But it would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas. It does.”
Dell — January 30 (though disclosed in March 2026). Dell’s total workforce fell about 10% in fiscal 2026 — roughly 11,000 jobs — to about 97,000 employees from 108,000 a year earlier, with $569 million spent on severance. The cuts came as Dell projected its AI-optimized server revenue could double in fiscal 2027.
Oracle — March 5-31, 2026. As noted above, Oracle began telling employees it would be cutting thousands of jobs via terminal emails. The cuts came even as Oracle posted $3.7 billion in quarterly net income, up 27% year-over-year, with remaining performance obligations up 325% to $553 billion — savings redirected toward AI data centers. The cuts that would later total 21,000 over 12 months, as Oracle disclosed in its June 22 annual filing.
Block — February 26-27, 2026. Jack Dorsey’s Block cut 4,000 jobs — nearly half its workforce, down to under 6,000 from over 10,000. Dorsey wrote on X: “We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company.” He added: “I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.”
Salesforce — February 10, 2026. Salesforce laid off fewer than 1,000 employees across marketing, product management, data analytics, and its Agentforce AI unit. The company told Fortune, “Because of the benefits and efficiencies of Agentforce, we’ve seen the number of support cases we handle decline and we no longer need to actively backfill support engineer roles.” This followed an earlier cut of about 4,000 customer-support roles, shrinking that team from roughly 9,000 to 5,000, with CEO Marc Benioff saying the company needed “less heads” because AI agents handle the work.
Amazon — January 28, 2026. Amazon cut 16,000 corporate jobs, following 14,000 cuts in October 2025 — about 9% of its corporate workforce in three months. The company said it was part of “strengthen[ing] our organization by reducing layers, increasing ownership, and removing bureaucracy.” CEO Andy Jassy had said in June 2025 that, “As we roll out more generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today… in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
![Monday.com is the latest tech company to blame AI for layoffs — here are 20 others | TechCrunch
Monday.com, the Tel Aviv-based work management software company known for its colorful, customizable project-tracking boards, this week became the latest tech company to cite AI as a factor in job cuts. On Wednesday, the company said in an SEC filing that it will lay off about 20% of its workforce, or just over 600 employees, as part of a “restructuring plan” tied to its “ongoing transformation of its product, marketing, and go-to-market strategy” in support of “a leaner, more focused operating model” as it continues investing in its “AI-driven growth strategy.”
Co-founder Eran Zinman told employees in a LinkedIn memo that the move “was not made to reduce costs or replace people with AI,” positioning it instead as adapting the organization to a new AI-first vision the company laid out roughly a year ago when it rebranded around a platform-wide AI push. Monday.com, which has two offices in the U.S., expects million to million in net restructuring charges but still projects up to 20% year-over-year revenue growth for 2026.
So far, according to new Financial Times analysis, U.S. tech companies have slashed nearly 140,000 jobs since the start of this year, with Amazon, Oracle, Meta, and Microsoft alone accounting for almost 50,000 of those cuts as they funnel hundreds of billions of dollars into AI data center buildouts. Interestingly, the FT also found that companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, suggesting the market doesn’t entirely buy the stories that the companies are telling.
Still, the picture isn’t uniformly bleak. The FT notes that AI-focused companies like Anthropic and OpenAI are hiring rapidly, absorbing some of the talent shed elsewhere in the industry. And within some of the very companies making cuts, headcount is shifting rather than disappearing entirely. Meta, for instance, earlier this year moved roughly 7,000 employees into new AI-focused roles even as it laid off 8,000 others, and IBM says it’s tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts.
Below is a running look — in reverse chronological order — at the bigger tech companies that have announced significant layoffs this year with AI as a stated factor.
Microsoft — July 9, 2026. Microsoft cut about 4,800 roles, or 2.1% of its global workforce, most of them in its Xbox gaming unit, resetting the business only three years after acquiring Activision Blizzard for billion, per the FT. Separately, it offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. The company said the role eliminations were “not being replaced by AI” but acknowledged “AI is changing how work gets done.” CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and was expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
Oracle — June 22, 2026. Oracle disclosed in late June that it had reduced its workforce by 21,000 employees over the past 12 months, a decline of 13%, which means more cuts than was previously known, including because of AI. “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” the company said in an annual financial regulatory filing.
GitLab — June 3, 2026. GitLab laid off roughly 350 workers, about 14% of its staff, to fund AI infrastructure investment and handle surging traffic from AI workflows. CEO Bill Staples said agentic workloads are “pushing competitors to the brink” and that the company had begun a “generational rebuild” of its core infrastructure to support what he called 100x growth requirements. GitLab is exiting 22 countries, flattening management layers, and partnering with an unspecified AI lab to rebuild its platform for agent-scale workloads. The company reported first-quarter revenue of 4 million, up 23% year-over-year, and expects to incur to million in restructuring costs.
Google — ongoing through May. Alphabet’s Google has quietly cut employees across its Cloud division, including its Threat Intelligence Group and Mandiant-linked cybersecurity staff, even as Cloud revenue grew 63% to exceed billion for the first time and its backlog nearly doubled to over 0 billion. Over the past year, Google has cut more than a third of the managers overseeing small teams — 35% fewer managers with fewer direct reports. Unlike most companies on this list, Google has never announced a single overall number — the cuts have come through a rolling performance review process, a voluntary buyout program, and structural reorganizations, with outside estimates putting the 2026 total at between 1,500 and 3,000+ engineers.
Intuit — May 20, 2026. Intuit announced plans to eliminate roughly 3,000 jobs — about 17% of its total workforce — in a restructuring centered on reducing complexity and reallocating resources toward AI. CEO Sasan Goodarzi reportedly told staff the company is reducing complexity and simplifying the structure so it can deliver better products.
Meta — May 20-21, 2026. Meta laid off about 8,000 employees, roughly 10% of its workforce, while moving about 7,000 employees into new AI-focused roles (that they reportedly hate). CEO Mark Zuckerberg told staff the cuts were necessary because “success isn’t a given” in AI.
Cisco — May 14, 2026. Cisco announced it’s cutting nearly 4,000 jobs, about 5% of its workforce, despite reporting better-than-expected profit and revenue. CFO Mark Patterson said: “This was really not a savings-driven restructure… this is more [about] realigning … resources around silicon, optics, security and AI.”
Cloudflare — May 7-8, 2026. Cloudflare cut about 20% of its workforce (1,100 people), reporting quarterly revenue of 9.8 million, up 34% year-over-year and the highest single quarter in company history. CEO Matthew Prince wrote that “the vast majority of those we laid off last week were measurers” — middle management, finance, legal, internal auditing, and revenue recognition.
General Motors — May 12, 2026. GM eliminated 500 to 600 jobs, largely in IT roles in Austin, Texas, and Warren, Michigan, saying it was reevaluating its workforce needs amid uncertain market conditions. A person familiar with the cuts told CNBC that AI played a role in the decision but that it wasn’t the only reason. GM’s statement said it was “transforming its Information Technology organization to better position the company for the future.” Despite the cuts, the company still had roughly 80 open IT positions, including roles in AI, motorsports, and autonomous vehicles.
Coinbase — May 5, 2026. The crypto exchange said it was cutting about 700 employees, or 14% of its staff, as part of a restructuring aimed at addressing market volatility and increasing AI efficiency. The company flattened its organizational structure to five layers below the CEO and COO, and said it would experiment with “one-person teams” combining engineering, design, and product roles. CEO Brian Armstrong wrote that AI had changed the pace of work dramatically — “engineers use AI to ship in days what used to take a team weeks” — and that the company needed to “leverage AI across every facet of our jobs.”
PayPal — May 5, 2026. PayPal announced plans to cut around 20% of its workforce over the next two to three years — north of 4,500 jobs — as part of a turnaround strategy centered on AI adoption and organizational simplification. CEO Enrique Lores told investors the company would “aggressively adopt AI” in its development processes and formed a new “AI transformation and simplification” team reporting directly to him, tasked with redesigning the company’s processes “function by function.” Lores framed the cuts as removing organizational layers, and said AI would extend well beyond coding into customer service, support operations, and risk management.Microsoft — April-May 2026. Microsoft offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and is expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
Snap — April 16, 2026. Snap cut roughly 16% of its global workforce — about 1,000 full-time employees — and closed more than 300 open roles, with CEO Evan Spiegel citing AI advancements as a key driver. “Rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” Spiegel wrote in a memo filed with the SEC. The company said it had already seen small squads using AI tools to drive progress across Snapchat+, ad platform performance, and infrastructure efficiency.
IBM — rolling through 2026. Between Q4 2025 cuts and April 2026 Red Hat engineering reductions, estimates range from 3,000 to 9,000 U.S. positions eliminated, bringing IBM’s cumulative total since September 2024 above 15,000. Bloomberg reported IBM plans to triple its U.S. entry-level hiring for AI and hybrid-cloud roles, even as roughly 200 HR positions were replaced by AI agents. An IBM spokesperson described the Q4 2025 round as a routine rebalancing affecting “a low single-digit percentage” of its global workforce.
Atlassian — March 11, 2026. Atlassian cut about 1,600 jobs (10% of its workforce) to “rebalance” toward AI and enterprise sales, even as shares rose nearly 2% on the news. CEO Mike Cannon-Brookes said: “Our approach is not ‘AI replaces people.’ But it would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas. It does.” Dell — January 30 (though disclosed in March 2026). Dell’s total workforce fell about 10% in fiscal 2026 — roughly 11,000 jobs — to about 97,000 employees from 108,000 a year earlier, with 9 million spent on severance. The cuts came as Dell projected its AI-optimized server revenue could double in fiscal 2027.
Oracle — March 5-31, 2026. As noted above, Oracle began telling employees it would be cutting thousands of jobs via terminal emails. The cuts came even as Oracle posted .7 billion in quarterly net income, up 27% year-over-year, with remaining performance obligations up 325% to 3 billion — savings redirected toward AI data centers. The cuts that would later total 21,000 over 12 months, as Oracle disclosed in its June 22 annual filing.
Block — February 26-27, 2026. Jack Dorsey’s Block cut 4,000 jobs — nearly half its workforce, down to under 6,000 from over 10,000. Dorsey wrote on X: “We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company.” He added: “I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.” Salesforce — February 10, 2026. Salesforce laid off fewer than 1,000 employees across marketing, product management, data analytics, and its Agentforce AI unit. The company told Fortune, “Because of the benefits and efficiencies of Agentforce, we’ve seen the number of support cases we handle decline and we no longer need to actively backfill support engineer roles.” This followed an earlier cut of about 4,000 customer-support roles, shrinking that team from roughly 9,000 to 5,000, with CEO Marc Benioff saying the company needed “less heads” because AI agents handle the work. Amazon — January 28, 2026. Amazon cut 16,000 corporate jobs, following 14,000 cuts in October 2025 — about 9% of its corporate workforce in three months. The company said it was part of “strengthen[ing] our organization by reducing layers, increasing ownership, and removing bureaucracy.” CEO Andy Jassy had said in June 2025 that, “As we roll out more generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today… in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Monday.com #latest #tech #company #blame #layoffs #TechCrunchAI,Layoffs](https://i2.wp.com/techcrunch.com/wp-content/uploads/2026/07/robot-at-desk.png?resize=1200%2C800&ssl=1 "Monday.com is the latest tech company to blame AI for layoffs — here are 20 others | TechCrunch
Monday.com, the Tel Aviv-based work management software company known for its colorful, customizable project-tracking boards, this week became the latest tech company to cite AI as a factor in job cuts. On Wednesday, the company said in an SEC filing that it will lay off about 20% of its workforce, or just over 600 employees, as part of a “restructuring plan” tied to its “ongoing transformation of its product, marketing, and go-to-market strategy” in support of “a leaner, more focused operating model” as it continues investing in its “AI-driven growth strategy.”
Co-founder Eran Zinman told employees in a LinkedIn memo that the move “was not made to reduce costs or replace people with AI,” positioning it instead as adapting the organization to a new AI-first vision the company laid out roughly a year ago when it rebranded around a platform-wide AI push. Monday.com, which has two offices in the U.S., expects million to million in net restructuring charges but still projects up to 20% year-over-year revenue growth for 2026.
So far, according to new Financial Times analysis, U.S. tech companies have slashed nearly 140,000 jobs since the start of this year, with Amazon, Oracle, Meta, and Microsoft alone accounting for almost 50,000 of those cuts as they funnel hundreds of billions of dollars into AI data center buildouts. Interestingly, the FT also found that companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, suggesting the market doesn’t entirely buy the stories that the companies are telling.
Still, the picture isn’t uniformly bleak. The FT notes that AI-focused companies like Anthropic and OpenAI are hiring rapidly, absorbing some of the talent shed elsewhere in the industry. And within some of the very companies making cuts, headcount is shifting rather than disappearing entirely. Meta, for instance, earlier this year moved roughly 7,000 employees into new AI-focused roles even as it laid off 8,000 others, and IBM says it’s tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts.
Below is a running look — in reverse chronological order — at the bigger tech companies that have announced significant layoffs this year with AI as a stated factor.
Microsoft — July 9, 2026. Microsoft cut about 4,800 roles, or 2.1% of its global workforce, most of them in its Xbox gaming unit, resetting the business only three years after acquiring Activision Blizzard for billion, per the FT. Separately, it offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. The company said the role eliminations were “not being replaced by AI” but acknowledged “AI is changing how work gets done.” CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and was expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
Oracle — June 22, 2026. Oracle disclosed in late June that it had reduced its workforce by 21,000 employees over the past 12 months, a decline of 13%, which means more cuts than was previously known, including because of AI. “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” the company said in an annual financial regulatory filing.
GitLab — June 3, 2026. GitLab laid off roughly 350 workers, about 14% of its staff, to fund AI infrastructure investment and handle surging traffic from AI workflows. CEO Bill Staples said agentic workloads are “pushing competitors to the brink” and that the company had begun a “generational rebuild” of its core infrastructure to support what he called 100x growth requirements. GitLab is exiting 22 countries, flattening management layers, and partnering with an unspecified AI lab to rebuild its platform for agent-scale workloads. The company reported first-quarter revenue of 4 million, up 23% year-over-year, and expects to incur to million in restructuring costs.
Google — ongoing through May. Alphabet’s Google has quietly cut employees across its Cloud division, including its Threat Intelligence Group and Mandiant-linked cybersecurity staff, even as Cloud revenue grew 63% to exceed billion for the first time and its backlog nearly doubled to over 0 billion. Over the past year, Google has cut more than a third of the managers overseeing small teams — 35% fewer managers with fewer direct reports. Unlike most companies on this list, Google has never announced a single overall number — the cuts have come through a rolling performance review process, a voluntary buyout program, and structural reorganizations, with outside estimates putting the 2026 total at between 1,500 and 3,000+ engineers.
Intuit — May 20, 2026. Intuit announced plans to eliminate roughly 3,000 jobs — about 17% of its total workforce — in a restructuring centered on reducing complexity and reallocating resources toward AI. CEO Sasan Goodarzi reportedly told staff the company is reducing complexity and simplifying the structure so it can deliver better products.
Meta — May 20-21, 2026. Meta laid off about 8,000 employees, roughly 10% of its workforce, while moving about 7,000 employees into new AI-focused roles (that they reportedly hate). CEO Mark Zuckerberg told staff the cuts were necessary because “success isn’t a given” in AI.
Cisco — May 14, 2026. Cisco announced it’s cutting nearly 4,000 jobs, about 5% of its workforce, despite reporting better-than-expected profit and revenue. CFO Mark Patterson said: “This was really not a savings-driven restructure… this is more [about] realigning … resources around silicon, optics, security and AI.”
Cloudflare — May 7-8, 2026. Cloudflare cut about 20% of its workforce (1,100 people), reporting quarterly revenue of 9.8 million, up 34% year-over-year and the highest single quarter in company history. CEO Matthew Prince wrote that “the vast majority of those we laid off last week were measurers” — middle management, finance, legal, internal auditing, and revenue recognition.
General Motors — May 12, 2026. GM eliminated 500 to 600 jobs, largely in IT roles in Austin, Texas, and Warren, Michigan, saying it was reevaluating its workforce needs amid uncertain market conditions. A person familiar with the cuts told CNBC that AI played a role in the decision but that it wasn’t the only reason. GM’s statement said it was “transforming its Information Technology organization to better position the company for the future.” Despite the cuts, the company still had roughly 80 open IT positions, including roles in AI, motorsports, and autonomous vehicles.
Coinbase — May 5, 2026. The crypto exchange said it was cutting about 700 employees, or 14% of its staff, as part of a restructuring aimed at addressing market volatility and increasing AI efficiency. The company flattened its organizational structure to five layers below the CEO and COO, and said it would experiment with “one-person teams” combining engineering, design, and product roles. CEO Brian Armstrong wrote that AI had changed the pace of work dramatically — “engineers use AI to ship in days what used to take a team weeks” — and that the company needed to “leverage AI across every facet of our jobs.”
PayPal — May 5, 2026. PayPal announced plans to cut around 20% of its workforce over the next two to three years — north of 4,500 jobs — as part of a turnaround strategy centered on AI adoption and organizational simplification. CEO Enrique Lores told investors the company would “aggressively adopt AI” in its development processes and formed a new “AI transformation and simplification” team reporting directly to him, tasked with redesigning the company’s processes “function by function.” Lores framed the cuts as removing organizational layers, and said AI would extend well beyond coding into customer service, support operations, and risk management.Microsoft — April-May 2026. Microsoft offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and is expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.
Snap — April 16, 2026. Snap cut roughly 16% of its global workforce — about 1,000 full-time employees — and closed more than 300 open roles, with CEO Evan Spiegel citing AI advancements as a key driver. “Rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” Spiegel wrote in a memo filed with the SEC. The company said it had already seen small squads using AI tools to drive progress across Snapchat+, ad platform performance, and infrastructure efficiency.
IBM — rolling through 2026. Between Q4 2025 cuts and April 2026 Red Hat engineering reductions, estimates range from 3,000 to 9,000 U.S. positions eliminated, bringing IBM’s cumulative total since September 2024 above 15,000. Bloomberg reported IBM plans to triple its U.S. entry-level hiring for AI and hybrid-cloud roles, even as roughly 200 HR positions were replaced by AI agents. An IBM spokesperson described the Q4 2025 round as a routine rebalancing affecting “a low single-digit percentage” of its global workforce.
Atlassian — March 11, 2026. Atlassian cut about 1,600 jobs (10% of its workforce) to “rebalance” toward AI and enterprise sales, even as shares rose nearly 2% on the news. CEO Mike Cannon-Brookes said: “Our approach is not ‘AI replaces people.’ But it would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas. It does.” Dell — January 30 (though disclosed in March 2026). Dell’s total workforce fell about 10% in fiscal 2026 — roughly 11,000 jobs — to about 97,000 employees from 108,000 a year earlier, with 9 million spent on severance. The cuts came as Dell projected its AI-optimized server revenue could double in fiscal 2027.
Oracle — March 5-31, 2026. As noted above, Oracle began telling employees it would be cutting thousands of jobs via terminal emails. The cuts came even as Oracle posted .7 billion in quarterly net income, up 27% year-over-year, with remaining performance obligations up 325% to 3 billion — savings redirected toward AI data centers. The cuts that would later total 21,000 over 12 months, as Oracle disclosed in its June 22 annual filing.
Block — February 26-27, 2026. Jack Dorsey’s Block cut 4,000 jobs — nearly half its workforce, down to under 6,000 from over 10,000. Dorsey wrote on X: “We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company.” He added: “I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.” Salesforce — February 10, 2026. Salesforce laid off fewer than 1,000 employees across marketing, product management, data analytics, and its Agentforce AI unit. The company told Fortune, “Because of the benefits and efficiencies of Agentforce, we’ve seen the number of support cases we handle decline and we no longer need to actively backfill support engineer roles.” This followed an earlier cut of about 4,000 customer-support roles, shrinking that team from roughly 9,000 to 5,000, with CEO Marc Benioff saying the company needed “less heads” because AI agents handle the work. Amazon — January 28, 2026. Amazon cut 16,000 corporate jobs, following 14,000 cuts in October 2025 — about 9% of its corporate workforce in three months. The company said it was part of “strengthen[ing] our organization by reducing layers, increasing ownership, and removing bureaucracy.” CEO Andy Jassy had said in June 2025 that, “As we roll out more generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today… in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Monday.com #latest #tech #company #blame #layoffs #TechCrunchAI,Layoffs")
Post Comment