Workplace software company Monday.com is eliminating about 20% of its global workforce, laying off approximately 620 employees as part of a major structural shift toward artificial intelligence.
Co-founders Roy Mann and Eran Zinman announced the cuts in an employee letter, calling it the most painful decision in the company’s history.
Management stated that the decision was not driven by margin improvement or direct human replacement through automation. Instead, the company is adapting its operational framework to align with a broader shift in how software functions alongside human teams.
Over the past nine months, Monday.com shifted its focus from merely managing work to executing tasks directly for clients through a combination of employees and AI agents in a shared workspace.
The founders noted that the organizational setup built during the Software-as-a-Service boom could no longer support this strategy.
To streamline operations, Monday.com plans to remove management layers, create smaller autonomous teams, and adjust its customer engagement strategy.
READ: Amazon to lay off employees in Artificial General Intelligence unit (July 22, 2026)
Because its AI products require deeper implementation support and closer client contact, some existing roles will change while new positions are established.
The vast majority of financial savings from the workforce reduction will be reinvested into product development, internal AI technology, and future growth.
In internal communications, leadership dismissed the idea that internal AI adoption caused the layoffs, framing the move as a way to eliminate corporate friction.
Company leaders noted that internal projects were taking months due to unnecessary meetings and organizational complexity, frustrating employees across departments.
The restructuring coincides with shifting investor expectations across the technology sector.
Monday.com recently disclosed that its board canceled 10.875 million unissued shares reserved for employee incentive plans to minimize dilution for shareholders.
READ: Meta layoffs put four employees on visa at risk of leaving US (July 21, 2026)
The company confirmed the move will not impact existing employee stock options or restricted stock units.
Financial performance remains stable despite the job cuts and recent stock declines. In its first-quarter results, Monday.com reported revenue of $351.3 million, up 24 percent year-over-year, and doubled its operating profit to $20 million. The company reaffirmed its full-year revenue guidance of approximately $1.46 billion.
The firm has also modified its physical expansion plans by pausing a planned 1,000-square-meter office expansion at the EcoTower complex, opting instead to temporarily rent three floors at the nearby Sonol Tower.
Mann and Zinman expressed confidence in the company’s trajectory, stating that internal adoption of AI tools has boosted productivity and allowed the business to scale without expanding headcount at its previous pace.