Monday.com Lays Off 20% of Workforce for AI

Monday.com announced on Wednesday, July 22, that it is laying off approximately 20% of its workforce, totaling just over 600 employees. This significant reduction is part of a "restructuring plan" aimed at supporting a leaner operating model and accelerating the company's AI-driven growth strategy, according to a filing with the Securities and Exchange Commission (SEC). The Tel Aviv-based company, which now self-identifies as an "AI work platform," stated that the plan reflects an ongoing transformation of its product, marketing, and go-to-market strategy.

Eran Zinman, a co-founder of Monday.com, shared a memo on LinkedIn explaining the organizational changes. He noted that altering the company's strategy and product was insufficient, and the existing organizational structure was not suited for the "new AI era." The company anticipates net charges between $45 million and $55 million as a result of this restructuring. Despite the layoffs, Monday.com expects to maintain or improve its projected 19% to 20% year-over-year revenue growth for 2026.

The news of the layoffs comes a year after Monday.com announced a platform-wide AI shift. The company has offices in multiple locations globally, including New York and Denver. Shares of Monday.com Ltd (Nasdaq: MNDY) saw a slight increase following the announcement, though the stock remains down 74.45% year-over-year and 49.91% year-to-date. This move aligns with a broader trend in the software-as-a-service (SaaS) sector, where tech companies are increasingly emphasizing AI integration and, in some cases, workforce adjustments.