Monday.com lays off hundreds, citing AI strategy shift

Work management software provider Monday.com has significantly reduced its workforce, laying off approximately 600 employees, which represents about 20% of its global staff. The company attributes these cuts to a strategic shift and an increased focus on artificial intelligence (AI).

The Tel Aviv-based company stated that the changes are part of a restructuring plan aimed at transforming its product, marketing, and go-to-market strategies. The goal is to establish a leaner, more focused operating model that supports the company's AI-driven growth strategy. Monday.com has previously positioned itself as an "AI work platform" and has invested heavily in developing AI capabilities in recent years.

Financially, the company estimates the new plan will result in net charges of $45 million to $55 million. Despite these costs, Monday.com expects to maintain or improve its projected revenue growth of 19% to 20% year-over-year for 2026. The company's stock saw a marginal increase following the news, though it remains down significantly over the past year.

Eran Zinman, a co-founder of Monday.com, confirmed the layoffs in a memo shared on LinkedIn, stating that the organization built for a previous chapter is not the one that fits the "new AI era." The company has offices in Tel Aviv, New York, and Denver, among other global locations, but specific details on where the impacted jobs are located have not been disclosed.

This move follows a trend in the technology sector where companies cite AI advancements as a reason for headcount reductions. Companies like Block, Snap, and Uber have recently announced similar workforce adjustments. However, some firms, such as Klarna, have noted the value of human roles and have begun rehiring for positions previously affected by AI automation.