Monday.com Cuts 20% of Its Workforce as It Pivots to AI
Monday.com is cutting roughly 620 jobs, accounting for 20 percent of its global workforce, as it restructures around its AI-driven growth strategy and flatter organization. The Israeli project management company disclosed this plan in a Form 6-K filing with the US Securities and Exchange Commission on Tuesday.
Co-CEO Eran Zinman’s Note
Co-founder and co-CEO Eran Zinman shared a note on LinkedIn, calling this the most painful decision the company has made since its founding. He framed the restructuring as an offensive move, aiming to evolve the company rather than protect its current state.
Shift in Vision
Zinman explained that Monday.com’s core vision has evolved from managing work to actually doing the work for customers, with a collaboration between humans and AI agents. The existing organizational structure, he argued, doesn’t align with this new AI-focused era.
Financial Impact
The company expects to incur $45–$55 million in restructuring charges, including $30–$35 million in severance and employee benefits and roughly the same amount in office space impairments. Most of these charges are anticipated in the second half of 2026. Despite cuts, Monday.com plans to continue hiring in key strategic areas.
Industry Trends
This restructuring mirrors moves by other SaaS companies grappling with AI competition and investor anxiety. Wix cut 20 percent of its staff in May, while Atlassian laid off 1,600 jobs in March as part of their own AI pivots. The common trend across the industry: strong revenue growth coupled with significant headcount reductions, with savings redirected toward AI development.