Monday.com lays off hundreds to focus on AI

Workplace software company Monday.com has announced plans to lay off hundreds of employees as part of a strategic restructuring aimed at refocusing investments on artificial intelligence initiatives. The company stated the reductions, affecting approximately 20% of its workforce or about 630 staff, are intended to support a leaner, more focused operating model.

This move comes after Monday.com pivoted earlier in the year to make its AI Work Platform a core offering. The platform, redesigned around the premise that enterprise clients increasingly desire AI agents to collaborate with human employees, includes a no-code app builder, customizable AI agents, workflow automation tools, and a chatbot capable of generating reports and updating dashboards.

The company's decision places it among a growing number of technology firms that have reduced headcount to reallocate resources towards AI development. Layoffs within the tech sector have been substantial in 2026, with a reported 78% of companies citing a need to refocus efforts on AI as a reason for job cuts, according to Layoffs.fyi.

Monday.com anticipates incurring restructuring charges between $45 million and $55 million due to this overhaul. The company's strategy highlights the increasing industry-wide emphasis on integrating AI capabilities into core business operations.