Monday Effect: The Traditional Tech Contract Is Broken, Being Talented Is No Longer Enough

A wave of layoffs in Israeli high-tech, led by Monday.com with 20% of its workforce, is changing the psychological contract between employees and organizations. Experts analyze the impact of AI, job insecurity, and national trauma on workers' identity and the industry.

A broad wave of layoffs in Israeli high-tech, led by Monday.com which announced cutting 20% of its workforce (620 employees), marks a turning point in the psychological contract between employees and organizations. Alongside Monday, companies like Artlist (40%), Wix (20%), and Playtika (15%) also made cuts in 2026. Experts, including Ziv Elron, Noa Metz, and Dr. Hadar Ben Sira Rotman, analyze the consequences: loss of professional identity, damage to social status, family crises, and a sense of betrayal by companies that presented themselves as "family." The ongoing war and geopolitical instability add another layer of uncertainty. However, the AI revolution has yet to find balance, and the market is in shock.