Artificial intelligence is fueling a wave of layoffs across the tech sector, with Israeli companies cutting thousands of jobs as they race to reinvent themselves for the AI era. monday.com, Wix, and Fiverr have all announced major workforce reductions while shifting from traditional software to AI-driven platforms and services.

The trend mirrors a global shake-up. More than 165,000 tech workers were laid off worldwide in the first half of 2026, with giants including Microsoft, Oracle, Salesforce, and Intuit also slashing jobs as they pour billions into AI and restructure their businesses.

Yet the AI revolution is already facing its first reality check. Some companies have begun rehiring workers after discovering AI could not perform many roles as effectively as expected, raising growing doubts over whether today’s aggressive job cuts will deliver the long-term transformation executives have promised.

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