Monday.com lays off 630 staff to focus on AI Work Platform

Israeli workplace software maker Monday.com is laying off hundreds of employees as part of a restructuring plan to refocus its investments around AI projects. The company said it is reducing its headcount by 20%, or about 630 staff, to support a leaner, more focused operating model as it concentrates on its AI Work Platform.

Monday.com is pushing hard toward making its AI platform a core offering, redesigning its entire product around the belief that its enterprise customers increasingly want AI agents to work together with their employees. The AI Work Platform currently comprises a no-code app builder, a customizable AI agent, a workflow automation tool, and a chatbot that can do tasks like generating reports and updating dashboards.

The layoffs place Monday.com among a growing wave of tech companies cutting headcount to invest more heavily in AI. Tech layoffs in May hit levels unseen in years, and a record 78% of companies have blamed a need to refocus their efforts around AI as a reason for letting people go this year, according to Layoffs.fyi. Over 110,000 tech jobs have been cut so far in 2026.

Monday.com expects to incur $45 million to $55 million in charges due to the restructuring. The company stated that a leaner operating structure will allow it to move faster on its AI-first strategy and maintain competitiveness in the crowded enterprise software market.

The news comes amid a deep transformation in the enterprise SaaS market, with competitors like Asana and Smartsheet also integrating AI capabilities deeply into their platforms. Monday.com is betting that going all-in on an AI Work Platform will give it a differentiating edge.

A key question going forward is whether Monday.com can successfully execute its AI transformation through this strategic downsizing, and whether its AI Work Platform delivers enough customer value to offset the organizational disruption. The outcome will become clearer in coming quarterly earnings reports.