Monday.com Cuts 20% of Workforce as it Shifts Focus to AI-First Strategy

Monday.com is cutting around 20% of its global workforce, affecting nearly 620 employees, as it restructures the company around an AI-first strategy that it says will define its next phase of growth. In a letter to employees, co-founders Roy Mann and Eran Zinman described the layoffs as the “most painful decision” the company has made since it was founded, saying the changes are necessary as the workplace software provider moves beyond traditional work management tools. “We entered a new era where AI is transforming the role of software, creating the greatest opportunity our industry has ever seen,” the founders wrote. “We have a new market to capture. Without a fundamental change in how we operate, we will not be able to compete and win that market.” The company stressed that the decision was not made to reduce costs or replace employees with artificial intelligence. “Improving margins was not the purpose of this decision,” management said, adding that it plans to “reinvest the vast majority of the savings in our people, our products, AI, and future growth.” Addressing employee concerns in a follow-up Q&A, the company reiterated that its growing use of AI internally was not behind the job cuts. “No. While we are seeing significant value from AI internally, this decision was not made to reduce costs or replace people with AI,” the company said. “We see internal AI adoption as an accelerator of our growth.” The restructuring comes as Monday.com redefines its core business. Instead of focusing only on helping customers manage projects and workflows, the company is building a platform where employees and AI agents can work together to complete tasks. “Over the past nine months, we have shifted our core vision moving from managing work to doing the work for our customers, with people and AI agents working together in one workspace,” Mann and Zinman wrote. The founders said that changing products alone would not be enough to succeed in the AI era. “It became clear that changing our strategy and product is not enough,” they wrote. “The organization we built for our previous chapter is not the organization that fits the new AI era.” As part of the overhaul, Monday.com will reduce management layers, build smaller and more autonomous teams, and change how it sells and supports its products. The company said its AI offerings require closer collaboration with customers, including more hands-on implementation support and greater on-site engagement. While some existing roles will be eliminated or changed, new positions will also be created as the company expands its AI-focused business.