Monday.com cuts workforce, citing AI strategy
Work management company Monday.com announced significant layoffs affecting approximately 20% of its staff. The company attributes the move to a restructuring tied to its AI-driven growth strategy.
Work management software provider Monday.com has announced it will lay off approximately 20% of its workforce, impacting over 600 employees. The company stated the layoffs are part of a restructuring plan to support a leaner operation and an ongoing AI-driven growth strategy.
Co-founder Eran Zinman clarified that the decision was not intended to cut costs or replace employees with AI, but rather to align the organization with the company's AI-first vision introduced last year. Monday.com anticipates restructuring charges between $45 million and $55 million while maintaining its projection of up to 20% year-over-year revenue growth for 2026.
The move by Monday.com reflects a broader trend in the technology sector. Analysis indicates that U.S. tech companies have reduced their workforces by nearly 140,000 employees since the start of the year. Major companies like Amazon, Oracle, Meta, and Microsoft account for a significant portion of these cuts, redirecting substantial capital towards AI infrastructure.
Notably, companies that cite AI as a reason for layoffs have underperformed the Nasdaq by nearly 10% in the 30 trading days following their announcements, suggesting market skepticism towards these explanations.