Monday.com Cuts 20% of Staff While Insisting AI Isn’t Replacing Workers

Monday.com Cuts 20% of Staff While Insisting AI Isn’t Replacing Workers
Monday.com is shedding roughly a fifth of its workforce just as it races to rebuild its business around artificial intelligence, underscoring the tension between tech’s AI ambitions and the people whose jobs are being cut.

Early 2026: Pivot to an AI Work Platform

Over the past nine months, Monday.com has been reorienting its core vision from simple work management to “doing the work” alongside customers via AI agents integrated into its platform, according to a memo from co‑CEO Eran Zinman. The company redesigned its product around an AI Work Platform that includes a no‑code app builder, customizable AI agent, workflow automation, and a chatbot capable of generating reports and updating dashboards.

July 22, 2026: Layoffs Announced

On July 22, Monday.com disclosed in a regulatory filing that it will cut about 20% of its global workforce, or roughly 620–630 employees, to align with what it calls an “AI-driven growth strategy.” Executives said the move is meant to support “a leaner, more focused operating model” as it concentrates investment on its AI Work Platform.

In a message to staff, Zinman framed AI as “the greatest opportunity our industry has ever seen” and warned that without a “fundamental change” in how Monday.com operates, it will be unable to compete in this new market.

Company Framing vs. Industry Context

Zinman told employees the decision “was not made to reduce costs or replace people with AI,” emphasizing future growth and competitiveness instead. At the same time, the company plans to keep hiring in AI-focused roles, effectively shifting headcount rather than simply shrinking it.

Externally, analysts place Monday.com’s restructuring within a wider wave of tech layoffs tied to AI investments: more than 122,000 tech jobs have been cut in 2026, with a record share of companies citing AI refocusing as the rationale. Monday.com expects to incur $45–$55 million in restructuring charges as it executes the plan.

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