{"slug": "monday-com-is-cutting-20-percent-of-its-workforce-as-it-pivots-to-an-ai-work", "title": "Monday.com is cutting 20 percent of its workforce as it pivots to an AI work platform", "summary": "Monday.com is cutting about 620 jobs, 20 percent of its global workforce, as the Israeli project management company restructures around its AI Work Platform. Co-CEO Eran Zinman told staff the company needs a fundamentally different organization to compete in the AI era, though he insisted the cuts are not about replacing people with AI. The layoffs follow a brutal stretch for Monday.com's stock, which has lost more than half its value in 2026, and the company expects to incur between $45 million and $55 million in restructuring charges.", "body_md": "#### TL;DR\n\n*Monday.com plans to cut about 620 jobs, 20 percent of staff, as it restructures around its AI-driven growth strategy and flatter organisation*\n\nCo-CEO Eran Zinman told staff the Israeli software company needs a fundamentally different organisation to compete in the AI era, while insisting the cuts are not about replacing people with AI\n\n*Monday.com plans to cut about 620 jobs, 20 percent of staff, as it restructures around its AI-driven growth strategy and flatter organisation*\n\n[Monday.com is cutting roughly 20 percent of its global workforce,](https://www.businessinsider.com/monday-com-layoffs-ai-growth-strategy-2026-7) about 620 people, as the Israeli project management company restructures around what it calls its AI Work Platform. The company disclosed the plan in a Form 6-K filed with the US Securities and Exchange Commission on Tuesday, citing the need to support a leaner operating model aligned with its AI-driven growth strategy. Co-founder and co-CEO Eran Zinman published a note to staff on LinkedIn calling it the most painful decision the company has made since its founding.\n\nThe layoffs follow a brutal stretch for Monday.com’s stock, which has lost more than half its value in 2026 and roughly 75 percent from its 52-week high. The company is caught in the broader [SaaSpocalypse selloff that has punished enterprise software stocks](https://thenextweb.com/news/ibm-stock-barclays-quantum-software-saaspocalypse) as investors worry that AI agents and vibe coding could make conventional SaaS tools obsolete. Monday.com’s market capitalisation has fallen to roughly $3 billion, a fraction of the valuations it commanded during the pandemic-era software boom.\n\nZinman framed the restructuring as an offensive move rather than a defensive one, writing that the company is not making the change to protect what it has but to go all in on what it can become. He said Monday.com had shifted its core vision over the past nine months from managing work to doing the work for customers, with people and AI agents working together in one workspace. The organisation built for the previous chapter, he argued, does not fit the new AI era.\n\nThe company expects to incur between $45 million and $55 million in restructuring charges, split between $30 million to $35 million in severance and employee benefits and roughly the same amount in office space impairments, partially offset by about $15 million in non-cash credits for share-based compensation. Most charges are expected to land in the second half of 2026. Monday.com said it plans to continue hiring in key strategic areas even as it cuts elsewhere.\n\nThe restructuring mirrors moves by other SaaS companies caught between strong revenue growth and investor anxiety about AI disruption. [Fellow Israeli software company Wix cut 20 percent of its staff in May](https://thenextweb.com/news/wix-is-cutting-20-of-its-workforce-as-a-strong-shekel-and-ai-competition-squeeze-the-website-builder-from-both-sides), citing similar pressures from AI competition and a strengthening shekel, while [Atlassian cut 1,600 jobs in March](https://thenextweb.com/news/atlassian-is-cutting-1600-jobs-and-replacing-its-cto) and replaced its CTO as part of its own AI pivot. The pattern across the industry is consistent: record or near-record revenues, significant headcount reductions, and savings redirected toward AI.\n\nZinman addressed the obvious question directly in a FAQ appended to his note, writing that the decision was not made to reduce costs or replace people with AI. He described three structural changes: a flatter organisation with fewer management layers, more autonomous teams with broader ownership, and a new go-to-market model that puts staff closer to customers as they adopt AI. The company said it intends to reinvest the vast majority of savings in people, products, and future growth.\n\nWhether the market believes that framing remains to be seen. Monday.com reported first-quarter revenue of $351 million, up 24 percent year on year, the kind of growth rate that would have delighted investors two years ago. But in a market where AI is simultaneously the justification for cutting staff and the product companies are pivoting toward, the question is whether restructuring announcements like this one represent genuine strategic shifts or what OpenAI CEO Sam Altman has called AI washing, the practice of citing artificial intelligence to justify decisions driven by other pressures entirely.\n\nGet the most important tech news in your inbox each week.", "url": "https://wpnews.pro/news/monday-com-is-cutting-20-percent-of-its-workforce-as-it-pivots-to-an-ai-work", "canonical_source": "https://thenextweb.com/news/monday-com-layoffs-20-percent-ai-growth-strategy", "published_at": "2026-07-22 18:22:06+00:00", "updated_at": "2026-07-22 18:58:58.012699+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-products", "ai-startups", "ai-policy"], "entities": ["Monday.com", "Eran Zinman", "US Securities and Exchange Commission", "Wix", "Atlassian"], "alternates": {"html": "https://wpnews.pro/news/monday-com-is-cutting-20-percent-of-its-workforce-as-it-pivots-to-an-ai-work", "markdown": "https://wpnews.pro/news/monday-com-is-cutting-20-percent-of-its-workforce-as-it-pivots-to-an-ai-work.md", "text": "https://wpnews.pro/news/monday-com-is-cutting-20-percent-of-its-workforce-as-it-pivots-to-an-ai-work.txt", "jsonld": "https://wpnews.pro/news/monday-com-is-cutting-20-percent-of-its-workforce-as-it-pivots-to-an-ai-work.jsonld"}}