Israeli workplace software maker Monday.com said it will cut about 20% of its workforce—roughly 630 employees—as part of a restructuring to concentrate investment on AI projects and "support a leaner, more focused operating model." The company framed the move as a shift of resources toward its AI Work Platform.
Focus of the AI Work Platform
Earlier this year, Monday.com reoriented its product strategy to make the AI Work Platform a core offering, based on the premise that enterprise customers increasingly want AI agents working alongside human employees. The platform currently includes:
- a no‑code app builder,
- a customizable AI agent,
- a workflow automation tool,
- a chatbot capable of tasks such as generating reports and updating dashboards.
Financial impact and industry context
Monday.com expects the restructuring will generate one‑time charges in the range of $45 million to $55 million. The company's decision aligns with a wider trend of major technology firms reducing headcount while reallocating spending toward AI capabilities.
Data from Layoffs.fyi show that tech sector layoffs reached a monthly high in May, and that a record 78% of companies that cut staff this year cited a need to refocus efforts around AI as a reason for job reductions. So far in 2026, more than 122,000 tech roles have been eliminated, according to Layoffs.fyi.
Implications for employees and customers
Monday.com said the restructuring aims to accelerate product development and better integrate AI features into its offerings. At the same time, the 20% reduction in staff will have immediate effects on the employees impacted and on teams that are being reorganised.
The company has not provided detailed timing for the layoffs or specifics on support for affected employees.
Summary
Monday.com's workforce reduction is part of a broader industry pattern of organisational change as tech companies redirect resources toward AI. The firm will reduce its headcount by about 630 people and expects $45–55 million in one‑time restructuring charges.
