Monday.com Cuts Workforce by 20% to Focus on AI

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Monday.com Cuts Workforce to Focus on AI
Israeli software company Monday.com has recently announced a significant reduction in its workforce, laying off approximately 630 employees, or 20% of its staff. This restructuring plan aims to refocus the company's investments on projects related to artificial intelligence (AI).
Earlier this year, Monday.com heavily redirected its business to make its AI platform a central offering. The company has redeveloped its entire product around the belief that its enterprise customers increasingly want AI agents to collaborate with their employees. This AI work platform now includes several innovative tools:
- A no-code application builder
- A customizable AI agent
- A workflow automation tool
- A chatbot capable of generating reports and updating dashboards
General Trend in the Tech Sector
Monday.com is not alone in this approach. Many large tech companies have also implemented massive layoffs to bolster their investments in AI. In May, layoffs in the sector reached a record level, with 78% of companies justifying these reductions by the need to focus on AI, according to data from Layoffs.fyi.
By 2026, over 122,000 jobs in the tech sector have been eliminated, highlighting the scale of this trend. Monday.com expects to incur financial charges between $45 million and $55 million due to this restructuring.
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