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Monday.com cuts for AI
Monday.com, a Tel Aviv-based work management software company, said in an SEC filing that it would lay off about 20% of its workforce, or just over 600 employees, as part of a “restructuring plan” tied to its “ongoing transformation of its product, marketing, and go-to-market strategy.”
“it will lay off about 20% of its workforce, or just over 600 employees”
The company said the plan is meant to create “a leaner, more focused operating model” while it continues investing in its “AI-driven growth strategy,” and it expects $45 million to $55 million in net restructuring charges.
In a LinkedIn memo to employees, co-founder and co-CEO Eran Zinman wrote that the decision “was not made to reduce costs or replace people with AI,” framing it instead as adapting the organization to a new AI-first vision the company laid out roughly a year ago.
Zinman told employees the move was “the most painful decision we have made since founding monday.com,” and he said leadership was taking full responsibility for the layoffs.
The Tech Buzz and Storyboard18 both describe the same core action—Monday.com cutting about 20% of its workforce—while Storyboard18 adds that the company initiated a restructuring plan to reduce headcount by about 630 employees.
Industry pattern and skepticism
TechCrunch’s roundup places Monday.com among other firms citing AI as a factor in job cuts, including Microsoft on July 9, 2026, which cut about 4,800 roles, or 2.1% of its global workforce, mostly in its Xbox gaming unit.
In the same TechCrunch account, Oracle said in late June that it had reduced its workforce by 21,000 employees over the past 12 months, a decline of 13%, and it stated that “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce.”
TechCrunch also reports that Financial Times analysis found companies citing AI as a factor in job cuts “have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements.”
The Tech Buzz similarly frames the layoffs as part of a broader tech-sector context, citing a Financial Times analysis that American technology companies have laid off nearly 140,000 jobs since the start of the year.
Zamin.uz adds additional context around market reaction, saying that “the stock performance of companies that cited AI as the reason for their layoffs underperformed the NASDAQ index by 10%.”
What happens next
Monday.com’s restructuring is presented as shifting how the company operates rather than simply shrinking, with Zinman telling employees the move was “not about asking fewer people to do the same amount of work.”
“Improving margins was not the purpose of this decision”
In the Storyboard18 memo, Zinman said “Improving margins was not the purpose of this decision,” adding that the company intends to reinvest “the vast majority of the savings in our people, our products, AI, and future growth.”
The TechCrunch report says Monday.com expects up to 20% year-over-year revenue growth for 2026 even as it plans to cut headcount and invest in AI-driven growth.
Beyond Monday.com, TechCrunch describes how other companies are shifting roles rather than eliminating all work, including Meta moving roughly 7,000 employees into new AI-focused roles while laying off 8,000 others, and IBM tripling entry-level hiring for AI and hybrid-cloud roles.
Zinman’s memo also rejects a narrative of replacement by AI, writing “We are not making this change to protect what we have,” and instead positioning the layoffs as part of going “all in on what monday.com can become.”