monday.com cuts 20% of staff—about 620 jobs—to build for the AI era
The Nasdaq-listed work-software maker is laying off roughly 20% of its workforce as it restructures around AI agents and human collaboration.
In Brief
- monday.com is cutting about 20% of its global workforce—roughly 620 employees, including ~350 in Israel.
- Management says the cuts fund a restructuring around AI agents, not a cost grab or AI replacing workers.
- The Nasdaq-listed firm (MNDY) is flattening management and redirecting resources to its AI Work Platform.
monday.com is shrinking to grow differently. The Israeli work-software company said Wednesday it will cut about 20% of its global workforce—roughly 620 employees—as it restructures around artificial intelligence, according to Calcalistech.
The blow lands heavily at home. Globes reports about 350 of the affected roles are in Israel, roughly half of monday.com’s employees at its Tel Aviv development center.
Founders Roy Mann and Eran Zinman called it the “most painful decision” since the company’s founding in a letter to staff, per Ynet. The framing matters: this is presented as a rebuild, not a belt-tightening.
What monday.com’s restructuring actually does
The company says it is moving from a platform built to manage work to one designed for employees and AI agents to perform work together. That means flattening management layers and redirecting spend toward its AI Work Platform and autonomous agents.
Crucially, monday.com insists the layoffs are not a short-term cost cut and not AI replacing workers outright. Seeking Alpha notes the plan was approved as part of a broader realignment around the firm’s AI-driven growth strategy.
The logic is familiar across software: as products gain agentic features, the org chart that shipped them may no longer fit. monday.com is betting a leaner structure lets it ship AI features faster than a larger one would.
Why an AI pivot costs jobs now
There’s a tension worth naming. A company that sells AI-powered work tools laying off hundreds inevitably invites the “AI is replacing you” reading—even when management denies it. The truth is usually both/and: roles change faster than headcount adjusts.
Investors will watch whether the restructuring lifts growth or just margins. monday.com is publicly traded, so the market will judge quickly whether the AI repositioning justifies the human cost.
For AI-adopting enterprises, the move is a leading indicator: the firms building agentic software are also reshaping themselves around it. As more companies restructure for AI, monday.com’s pain may be a template for the sector’s next two years.
FAQ
How many monday.com jobs are cut?
About 620, roughly 20% of the workforce, with around 350 of those in Israel.
Is AI replacing the workers?
The company says no—the layoffs fund a reorganization around AI agents, not direct replacement.
Is monday.com publicly traded?
Yes, on Nasdaq under the ticker MNDY.
