Markets & Business
Monday.com cuts 630 jobs, about 20% of staff, to double down on AI
Israeli workplace software maker Monday.com is laying off about 630 employees, roughly 20% of its headcount, as part of a restructuring to refocus investment around its AI Work Platform.
Monday.com, the Israeli workplace-software maker, is laying off hundreds of employees as part of a restructuring plan to refocus its investments around AI projects. The company said it is reducing its headcount by 20%, or about 630 staff, to “support a leaner, more focused operating model” as it concentrates on its AI Work Platform.
Monday.com pivoted hard toward making its AI platform a core offering earlier this year, redesigning its entire product around the belief that enterprise customers increasingly want AI agents working alongside their employees. The AI Work Platform currently comprises a no-code app builder, a customizable AI agent, a workflow automation tool, and a chatbot that can handle tasks like generating reports and updating dashboards.
Monday.com joins a host of large tech firms that have laid off hundreds of thousands of people as they seek to invest more in AI. Tech layoffs in May hit a monthly high unseen in years, and a record 78% of companies have blamed a need to refocus their efforts around AI as a reason for letting people go this year, according to Layoffs.fyi. More than 122,000 tech roles have been cut so far in 2026, Layoffs.fyi data shows.
The company expects to incur $45 million to $55 million in charges due to the restructuring.
Why it matters
Monday.com’s cuts show the AI pivot is now reshaping headcount even at profitable, mid-sized SaaS firms — not just giants — reinforcing a 2026 pattern where restructuring around AI, rather than distress, is becoming tech’s default layoff rationale.