Monday.com lays off 630 staff in AI restructuring
Original: Monday.com lays off hundreds to focus on AI
Why This Matters
The cuts reflect a broad industry shift where enterprise software firms are restructuring headcount to prioritize AI-driven product strategies.
Israeli workplace software firm Monday.com is cutting approximately 630 employees — 20% of its workforce — as part of a restructuring plan to refocus investments on its AI Work Platform. The company expects to incur $45M–$55M in related charges.
Monday.com announced a 20% reduction in headcount, affecting approximately 630 employees, as the company restructures to concentrate on its AI Work Platform. The company stated the move is intended to "support a leaner, more focused operating model." Earlier in 2026, Monday.com pivoted its entire product strategy around AI, redesigning its offerings based on the belief that enterprise customers increasingly want AI agents working alongside employees. The AI Work Platform includes a no-code app builder, a customizable AI agent, a workflow automation tool, and a chatbot capable of generating reports and updating dashboards. Monday.com expects restructuring charges of $45 million to $55 million. The layoffs are part of a broader industry trend: according to Layoffs.fyi, more than 122,000 tech roles have been cut so far in 2026, with a record 78% of companies citing AI refocusing as a reason for reductions. Tech layoffs in May 2026 hit a monthly high not seen in years.