News

Monday.com Cuts 20% of Staff in AI Pivot

Monday.com announced on July 22 that it is cutting approximately 620 to 630 employees — about 20% of its global workforce — as the Israeli workplace software company rebuilds its product line around artificial intelligence. The company expects to incur restructuring charges of $45 million to $55 million, according to TechCrunch's reporting.

Co-CEOs Roy Mann and Eran Zinman framed the move as an existential repositioning rather than a cost-cutting exercise, telling employees in a letter: "This is the most painful decision we have made since the founding of monday — and yet we are confident that it is the correct one," according to Globes.

Context

Monday.com's core strategy is shifting from a platform that helps teams manage work to one where AI agents and human employees perform work together. The company has spent the past several months redesigning its product around features that include a no-code app builder, workflow automation tools, and a customizable AI agent — changes the co-CEOs described as the largest product overhaul in the company's history.

The restructuring also involves flattening management layers and creating smaller autonomous teams. Mann and Zinman said the resources freed up will be reinvested in product development and AI infrastructure, and stressed the layoffs are not a response to replacing workers with AI on a one-for-one basis, but rather a reallocation toward a leaner organizational model suited to the new product direction. Monday.com's shares have fallen roughly 50% since the start of 2026, mirroring declines across the broader software sector.

The cuts arrive as workforce reductions tied to AI overhauls have become a defining pattern in tech this year. A Skillsyncer tracker aggregating verified news reports and SEC filings shows more than 205,000 tech workers have lost jobs in 2026 across 322 recorded layoff events, with 54% of those events citing AI or automation as a contributing factor.

What This Means for Job Seekers

Monday.com's announcement is a useful case study in how profitable, growth-stage SaaS companies are now restructuring — not because they're struggling to survive, but because they're rewriting what their products do and, consequently, what skills they need on payroll. The roles being reduced are not necessarily underperforming ones; they're the organizational layers that made sense before AI agents became capable of handling workflow automation.

For workers in project management software, enterprise SaaS, and adjacent support or implementation roles, this is a signal worth taking seriously. Reviewing your own skill set for overlap with what AI tools are absorbing — routine workflow configuration, low-complexity customer onboarding, repetitive data tasks — is a practical first step. If you are currently in a job search, our guide to navigating the job market in the AI era outlines which skills remain high-value and which categories of roles are most exposed. If you are already in tech and want to future-proof your position, the frameworks we cover in AI-proof career skills for 2026 are directly applicable to the kind of repositioning Monday.com is rewarding internally right now.