Monday.com leads fresh wave of AI layoffs, cutting roughly 20% of staff
Monday.com will cut about 20% of its global workforce as part of an AI-driven restructuring, joining a surge of AI layoffs across big tech.
Monday.com to eliminate roughly 600 positions
Monday.com announced this week that it will lay off just over 600 employees, about 20% of its headcount, as part of a company-wide restructuring tied to its AI strategy. The Tel Aviv-based work management firm said the move supports a “leaner, more focused operating model” as it pivots product and go-to-market efforts toward AI.
Co-founder Eran Zinman told staff the decision is intended to align the organization with an AI-first vision rather than to directly replace people with automation. The company expects one-time restructuring charges in the tens of millions but still projects significant revenue growth next year.
Restructuring driven by platform-wide AI push
Company filings and internal memos link the reductions to a multiyear transformation that centers AI across products and marketing. Monday.com is repositioning teams to accelerate development of generative and automation features built into its project-tracking boards. The company framed the changes as part of a broader investment in AI-driven growth even as it trims roles that the new structure deems redundant.
Executives emphasized that the reshuffle is intended to free resources for AI infrastructure and product work, signaling a shift from traditional support and management layers to engineering and platform roles. That realignment mirrors moves other vendors have described when reorganizing around AI capabilities.
Financial impact and company guidance
Monday.com disclosed anticipated net restructuring costs estimated between $45 million and $55 million tied to severance and related charges. Despite the one-time expenses, the company reaffirmed an outlook that assumes strong year-over-year revenue growth for the coming fiscal year. Investors will watch whether the savings and renewed AI focus translate into the accelerated product adoption and margins the firm is projecting.
The cost-benefit calculus hinges on execution: reassigning talent, accelerating AI product releases, and converting those investments into sustainable revenue while absorbing the near-term financial hit. The company also highlighted that the reductions are designed to support a more streamlined operating model rather than immediate cost cutting alone.
Broader trend: major tech firms have announced AI layoffs
Monday.com’s announcement is the latest in a string of companies citing AI as a factor in workforce reductions this year. Across the U.S., hundreds of thousands of technology roles have been eliminated, with large cloud and software firms among the most active. High-profile names have publicly linked cuts to the adoption or deployment of AI technologies and organizational changes to support AI investments.
Some firms have been explicit about AI reducing the need for particular layers of work, while others describe role shifts and reassignments as they build out new AI capabilities. The pattern has ranged from targeted divestments of middle-management and support roles to broader reshuffles that touch engineering, product, and corporate functions.
Talent flows and the rise of AI hiring pockets
While many organizations are trimming staff in areas made less central by automation, a parallel hiring surge is underway at AI-focused companies and internal AI units. Startups and research labs building generative AI and agentic systems report robust recruitment, absorbing some displaced engineers and product specialists. Even legacy vendors are increasing entry-level hiring for AI and hybrid-cloud roles even as they cut elsewhere.
That bifurcation means headcount is shifting rather than disappearing wholesale in the tech labor market. Several large employers have simultaneously reduced some roles while moving thousands of staff into new AI roles or creating hiring pipelines aimed at building AI expertise.
Market reaction and investor skepticism
Announcements that link workforce reductions to AI do not always reassure markets. In many cases, stocks have underperformed in the weeks following such disclosures, reflecting investor scrutiny about whether layoffs will deliver the expected strategic benefits. Analysts and shareholders are parsing whether companies are capturing efficiency gains or simply signaling deeper demand weakness.
Companies that succeed will need to demonstrate that reorganizations accelerate product development, reduce costs sustainably, and expand addressable markets through AI-enabled offerings. Failure to show those outcomes risks further share-price pressure and additional restructuring rounds.
The industry is in a period of active reconfiguration as AI reshapes job requirements, team structures, and capital allocation. Companies are balancing sizeable investments in data centers and model infrastructure with decisions that alter staffing profiles across functions.
As the calendar moves forward, the technology sector is likely to continue adjusting how it defines essential roles and where it concentrates hiring. Workers and employers alike face an uneven transition: roles tied to repetitive or measurable tasks are most exposed, while demand grows for engineers, data specialists, and product teams who can build and operationalize AI systems.
