monday.com Cuts 20% of Workforce to Bet on AI, Restructuring Costs Up to $55 Million
N.R. Finch
Israeli workplace-software company monday.com is cutting roughly 20% of its workforce — about 630 people — to pivot fully toward an AI work platform, with restructuring charges of up to $55 million. It is the latest SaaS company trading headcount for an AI future.
How deep are the cuts, and what do they cost?
monday.com is eliminating about 630 roles, roughly 20% of its workforce (based on 3,155 employees disclosed in its 2025 annual report).
The company expects restructuring charges of $45 million to $55 million, disclosed via a 6-K filing with the SEC.
Management says it will keep hiring in AI-focused areas. This means → the move is not a blanket cost cut — it is a resource transfer from legacy operations to the AI bet.
What exactly is the "AI work platform" it is betting on?
monday.com has repositioned its AI platform as the core product this year, redesigning its entire product architecture around it.
The platform currently bundles four capabilities: a no-code app builder, customizable AI agents — autonomous assistants that execute tasks — workflow automation tools, and a chatbot that generates reports and updates dashboards.
In plain terms = the company is wagering that enterprise customers want AI agents working alongside employees, not just traditional project-management software. The old tool is the delivery vehicle; AI is the engine.
How did the market react?
monday.com shares rose briefly after the announcement, then pulled back.
The bigger picture: the stock has fallen roughly 75% over the past year, and valuation pressure persists.
This reflects a "show me the results" stance — layoffs can boost near-term margins, but proving real AI-platform competitiveness is what will determine whether the valuation recovers.
How big is the broader AI-driven layoff wave?
According to Layoffs.fyi, the tech industry has cut more than 122,000 jobs so far in 2026.
78% of those companies cited "refocusing on AI" as the reason — a record high. May alone hit a multi-year monthly peak.
Snap and Block recently announced layoffs on the same grounds. This means → monday.com is not an outlier — the entire industry is reallocating resources by cutting old roles and funding new ones.
What is the existential threat to the project-management software market?
Investors worry about what the market calls a "SaaS doomsday" — the risk that advancing AI fundamentally undermines demand for traditional project-management tools.
In plain terms = if AI agents can break down tasks, schedule work, and track progress on their own, the ceiling on selling standalone PM software drops sharply.
Whether monday.com can use this restructuring to build genuine AI-platform competitiveness — rather than merely trimming costs for a short-term margin bump — is the key test the market will use to judge the pivot.
Content is for reference only, not financial advice.