Work management software company Monday.com is laying off around 20 per cent of its global workforce, impacting nearly 620 employees, as it restructures its business to become an AI-first organisation.
In a letter to employees, co-founders Roy Mann and Eran Zinman described the layoffs as the most difficult decision in the company’s history, saying the restructuring is aimed at preparing the organisation for the next phase of growth driven by artificial intelligence.
The company, however, emphasised that the job cuts are not intended to reduce costs or replace employees with AI. Instead, it said the savings from the restructuring will largely be reinvested in employees, product development, AI capabilities and future growth initiatives.
Monday.com said it is shifting its strategy from helping customers manage work to enabling work to be completed through collaboration between employees and AI agents on a unified platform. According to the founders, the transition requires not only new products but also a different organisational structure.
As part of the overhaul, the company will simplify its organisational hierarchy, reduce management layers and create smaller, more autonomous teams. It also plans to redesign its customer-engagement model to provide greater implementation support and closer collaboration as organisations adopt its AI offerings.
While some existing roles will be eliminated or redefined, the company said it also expects to create new positions aligned with its AI-focused strategy.
The announcement comes as technology companies continue to reshape their workforces to support growing investments in artificial intelligence. While many organisations have linked restructuring to efficiency gains from AI, Monday.com has maintained that its decision is driven by a broader strategic transformation rather than the replacement of employees with AI tools.
