Monday.com Cuts Workforce to Focus on AI Development

Israeli software company Monday.com is initiating layoffs of several hundred employees as part of a restructuring plan aimed at refocusing its investments on AI projects.

The company revealed that it will reduce its workforce by 20%, which translates to approximately 630 positions, to develop a “leaner, more targeted operating model” with an emphasis on its AI Work Platform.

Earlier this year, Monday.com significantly pivoted towards making its AI platform a central aspect of its offerings, reformulating its entire portfolio under the belief that enterprise clients increasingly seek AI agents to assist their teams. The AI Work Platform now features a no-code app builder, a customizable AI assistant, a workflow automation tool, and a chatbot capable of performing tasks such as generating reports and updating dashboards.

The company is one of many major technology firms that have laid off hundreds of thousands of employees as they work to strengthen their AI investments. Layoffs in the tech sector peaked in May, a level not witnessed in years, with an astonishing 78% of firms citing the need to shift their focus toward AI as a justification for workforce reductions this year, according to Layoffs.fyi.

Currently, over 122,000 tech jobs have been cut in 2026, based on data from Layoffs.fyi.

Monday.com expects to incur charges between $45 million and $55 million as a result of the restructuring effort.