Monday.com is cutting about 20% of its global workforce as the Israeli software company restructures its operations around artificial intelligence, according to a report by CTech.
The move will affect approximately 620 employees worldwide and comes as the workplace software provider shifts from helping customers manage work to a model where employees and AI agents can perform tasks together.
Co-founders Roy Mann and Eran Zinman described the layoffs as the “most painful decision” since the company was founded, according to CTech.
Monday.com Reshapes Business For AI Era
The restructuring reflects a broader change in Monday.com's strategy as artificial intelligence transforms the software industry.
According to CTech, the founders told employees that the company has spent the past nine months moving its core vision from “managing work” toward “doing the work” for customers, with people and AI agents operating together in a single workspace.
Management said changing its products and strategy alone would not be sufficient. The organisational structure built during the company's earlier phase was no longer suited to its AI-focused ambitions.
The restructuring is expected to reduce management layers and establish smaller, more autonomous teams. Monday.com also plans to change how it sells products and supports customers, with its newer AI offerings requiring closer implementation support and greater customer engagement.
Some existing roles will consequently change, while the company also expects to create new positions aligned with its strategy.
Also Read: Amazon Layoffs: Jobs Trimmed In Artificial Intelligence Group Even As Focus Stays On AI
Layoffs Not A Cost-Cutting Move
Monday.com stressed that the workforce reduction was neither aimed primarily at improving margins nor at replacing employees with AI.
The company plans to reinvest most of the savings generated by the restructuring into employees, products, artificial intelligence and future growth.
“The Plan reflects the Company's ongoing transformation of its product, marketing, and go-to-market strategy and is intended to support a leaner, more focused operating model as the Company continues to invest in its AI-driven growth strategy,” the company wrote in its exchange filing.
Stock Slips Even Though Revenue Rises 24% In First Quarter
Shares of Monday.com. fell sharply even after the company reported revenue of $351.3 million, representing a 24% increase from the previous year, according to CTech.
Operating profit stood at $20 million, twice the year-ago level, while the company maintained its full-year revenue forecast of approximately $1.46 billion.
Monday.com has also scaled back some of its office expansion plans. Meanwhile, the management believes greater use of AI tools internally will allow the business to continue expanding without increasing headcount at the same pace.
Following the restructuring, Mann and Zinman expect Monday.com to operate with fewer organisational layers, clearer priorities, faster decision-making and greater ownership across teams as it pursues opportunities created by the shift toward AI-powered software.
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