Monday.com cuts 20% of staff to fund AI Work Platform focus

Monday.com, an Israeli workplace software company, announced it will reduce its workforce by about 630 employees, approximately 20% of its staff, as part of a restructuring plan to prioritize its AI Work Platform. The company stated the move is intended to support a "leaner, more focused operating model" centered on AI. Monday.com earlier this year pivoted to make its AI platform a core offering, redesigning its product lineup around the expectation that enterprise customers increasingly want AI agents to collaborate with employees.

The AI Work Platform comprises several components: a no-code app builder, a customizable AI agent, a workflow automation tool, and a chatbot capable of tasks such as generating reports and updating dashboards. The company joins a growing list of large technology firms that have reduced staff while increasing investments in AI initiatives.

Monday.com expects the restructuring to result in $45 million to $55 million in charges. The announcement comes amid broader tech-sector layoffs in 2026, with more than 122,000 roles cut so far this year, according to Layoffs.fyi. The data also shows that 78% of companies have cited a need to refocus efforts around AI as a reason for layoffs.