Monday.com Cuts 20% of Workforce to Double Down on AI

Work management software company Monday.com is cutting approximately 20% of its workforce as it shifts more resources toward artificial intelligence, becoming the latest technology firm to restructure its business around AI.

The Israel-based company announced that it will lay off around 630 employees as part of a broader restructuring plan aimed at creating a leaner operating model. According to the company, the workforce reduction will help support its long-term strategy as it expands its AI-focused products and services.

The move comes after Monday.com significantly reshaped its business earlier this year by making its AI Work Platform the centerpiece of its product strategy. The company believes enterprise customers increasingly want AI agents to collaborate alongside employees, helping automate repetitive tasks while improving workplace productivity.

Its AI Work Platform now includes several AI-powered tools designed for businesses. These include a no-code application builder, a customizable AI agent, workflow automation capabilities, and an AI chatbot that can perform tasks such as generating reports, updating dashboards, and assisting with day-to-day business operations.

By concentrating more heavily on AI development, Monday.com joins a growing list of technology companies that have reduced their workforce while increasing investments in artificial intelligence.

Across the tech industry, companies have been restructuring operations to redirect resources toward AI research, infrastructure, and product development. Many organizations argue that AI will become a core driver of future growth, prompting significant changes in hiring strategies and business priorities.

The trend has accelerated throughout 2026. According to Layoffs.fyi, more than 122,000 technology jobs have already been eliminated this year. The data highlights the scale of the industry’s transformation as companies adapt to rapidly evolving AI technologies.

Separate figures also show that layoffs reached one of their highest monthly levels in recent years during May. In addition, data cited by Layoffs.fyi indicates that a record 78% of companies carrying out layoffs this year identified a shift toward AI investment as one of the primary reasons behind workforce reductions.

While job cuts continue across the sector, many companies are simultaneously increasing spending on AI-powered platforms, machine learning infrastructure, and intelligent workplace tools. Monday.com’s latest restructuring reflects that broader industry trend, with the company positioning artificial intelligence at the center of its future growth strategy.

The company expects the restructuring process to result in charges ranging between $45 million and $55 million, covering costs associated with the workforce reduction and organizational changes.

Although the layoffs represent a significant reduction in staff, Monday.com says the restructuring is intended to create a more focused business capable of accelerating innovation around its AI Work Platform. As competition among enterprise AI providers continues to intensify, the company is betting that stronger investment in AI will better position it for long-term growth in the workplace software market.

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