Monday.com Lays Off 20% of Workforce to Accelerate AI Strategy

Monday.com is laying off approximately 20% of its workforce, or about 630 employees, as part of a restructuring plan designed to increase investment in artificial intelligence. The Israeli workplace software company said the changes will create a leaner operating model while accelerating development of its AI Work Platform.

The AI Work Platform has become the centrepiece of Monday.com’s product strategy. It includes a no-code application builder, workflow automation tools, customisable AI agents and a chatbot capable of generating reports, updating dashboards and assisting with workplace tasks. The company says the shift reflects growing demand from enterprise customers for AI tools that can work alongside employees.

AI Strategy Reshapes Workforce

Monday.com expects the restructuring to result in charges of between $45 million and $55 million. The company joins a broader trend across the technology industry, where businesses are cutting costs and reallocating resources to AI development.

Data from Layoffs.fyi shows that more than 122,000 technology jobs have been eliminated so far in 2026, with many companies citing AI investment as a major factor behind workforce reductions. Monday.com’s latest move highlights how AI is reshaping priorities across the software industry as companies compete to deliver more advanced automation and productivity tools.