Why Monday.com Cut 20% of Its Workforce to Build an AI Work Platform

What prompted the cuts

Product transformation, not financial trouble. Co-CEO Eran Zinman described the decision as "very difficult" but necessary to remake the company around the AI Work Platform launched in May 2026 . The company's core vision shifted from "managing work" to "performing tasks," integrating humans and AI agents in a unified system .

Organizational redesign. monday.com is replacing a structure built around traditional work management with one designed for AI agents, autonomous teams, and a leaner operating model . About 350 of the affected employees are in Tel Aviv .

How it connects to the AI Work Platform shift

In May 2026, monday.com relaunched itself as an "AI work platform" with context-aware AI agents that execute tasks, a new seats-plus-credits pricing model, and a no-code app builder . The restructuring "reflects the ongoing transformation of its product, marketing, and go-to-market strategy" to match that vision . The company plans to continue hiring in key strategic areas even as it cuts overall headcount . The goal is a leaner organization that can move faster on AI agent capabilities and customer implementation expertise .

Restructuring charges and timeline

• Expected charges: $45 million to $55 million in net restructuring costs .
• Breakdown: $30 million–$35 million in severance and employee benefits, plus roughly the same amount in office space impairments, partially offset by about $15 million in non-cash credits for share-based compensation .
• Timeline: The charges will be "largely recognized in the second half of 2026" .

Broader industry tension

AI vs. SaaS business models. Investors increasingly fear that AI tools — particularly autonomous agents — could make traditional software-as-a-service solutions redundant or compress their value . Shares across the software sector have fallen sharply on these concerns .

Wave of AI-attributed layoffs. monday.com's cuts are part of a historically concentrated wave: over 122,000 tech jobs have been cut globally in 2026, many explicitly tied to AI-driven restructuring . The tension is between companies' need to invest heavily in AI capabilities and the reality that AI often replaces the very human roles that built those companies .