Monday.com Announces 20% Workforce Reduction Amid AI Strategy

Workforce reduction announced

Monday.com has announced plans to reduce its workforce by 20% as it pursues an AI-driven growth strategy. The software company said the planned layoffs are intended to align the business with its strategic focus on the AI Work Platform.

Event data lists 502 announced job cuts, while a separate report describes the reduction as affecting just over 600 employees. Both accounts identify the planned reduction as approximately 20% of the company’s staff, but they differ on the number of positions affected.

AI platform focus

The company linked the restructuring to a broader transformation of its product, marketing and go-to-market strategies. It said it is seeking a more streamlined and focused operating model while continuing investment in its AI-driven growth strategy.

Monday.com has presented the AI Work Platform as the centre of that strategy. Its disclosure described the workforce action as part of aligning the organisation around that focus, placing artificial intelligence directly within the stated rationale for the restructuring.

A co-founder, Eran Zinman, said the move was not intended as a cost-cutting exercise or as a plan to replace employees with AI. Instead, he described it as an alignment with an AI-first vision introduced roughly a year earlier.

That distinction is significant: Monday.com has cited AI as a major strategic factor in the reduction, but the available reporting does not describe the jobs as being directly replaced by AI systems.

Restructuring details

One report said Monday.com estimated restructuring costs of between $45 million and $55 million. The same report said the company projected revenue growth of up to 20% for 2026.

The reported workforce plan comes as technology companies continue to connect restructuring decisions with AI investment and changing operating priorities. Monday.com’s announcement specifically combines a reduction in staff with an intention to maintain investment in AI-led growth.

Business Insider reported that the company made the disclosure in a Form 6-K filing. Another report described a Wednesday SEC filing and said Monday.com has two U.S. offices. The available accounts do not provide a single matching job-cut total, but each frames the move as a workforce reduction of about one-fifth of staff tied to the company’s AI-focused strategy.

What the company has said

Monday.com’s stated rationale centres on organisational alignment rather than a simple reduction in spending. The company has described the action in the context of adapting its products, marketing and go-to-market approach for an AI-focused period in software.

The announced cuts therefore sit alongside continued investment in the company’s AI Work Platform. While the workforce figure differs between the available accounts, the underlying plan is consistently described as a 20% reduction connected to Monday.com’s AI-driven growth strategy.

Sources

• Monday.com Plans 20% Layoffs Citing 'AI-Driven Growth Strategy' - Business Insider
• Monday.com joins 20 rivals in cutting jobs to AI - xix.ai