Monday.com Cuts 20% of Workforce to Focus on AI Projects

Key points

• Monday.com is laying off 20% of its workforce, affecting 630 employees.
• The focus is a restructuring effort to prioritize AI platform development.
• The company expects to incur $45 million to $55 million in restructuring charges.

Israeli workplace software company Monday.com announced the layoff of 20% of its staff, about 630 employees. This decision is part of a strategic shift to concentrate on their AI Work Platform. This move, reported by TechCrunch AI, reflects a broader trend in the tech industry as firms pivot towards artificial intelligence.

Earlier this year, Monday.com made AI central to its business strategy. They redesigned their product offerings, focusing on tools that integrate AI agents, software that can complete tasks independently, into business workflows. The AI Work Platform includes a no-code app builder, a customizable AI agent, and tools for automating tasks and generating reports.

The company expects to face charges between $45 million and $55 million due to this restructuring. This step aligns Monday.com with numerous other tech companies that have laid off employees to invest more heavily in AI. According to Layoffs.fyi, over 122,000 tech jobs have been cut in 2026, with 78% of these companies citing a focus on AI as the reason.

How does this affect employees and users?

For employees, the layoffs mean immediate job losses, affecting their livelihoods. For users, Monday.com's shift towards AI could mean more advanced features in the long term. However, in the short term, users should be prepared for potential disruptions as the company transitions.

Monday.com hopes that a leaner structure will enhance its ability to innovate and respond to customer needs, focusing its resources on the rapidly evolving AI sector. This aligns with an industry-wide movement, as tech companies seek to harness AI for more efficient operations and customer solutions.