Monday.com plans 20% workforce reduction citing AI-driven growth strategy

Jul 22, 2026

Enterprise software company Monday.com is laying off 20% of its workforce, or about 620 employees, to align with its new "AI-driven growth strategy." The company states the move is not to cut costs but to restructure for a new market, creating a flatter organization. This is part of a wider tech trend where companies cite AI during layoffs, amid investor fears of a "SaaSpocalypse" for SaaS tools.

Monday.com workforce reduction

▪In its 2025 annual report, Monday.com stated that it had 3,155 employees.
▪Monday.com plans to reduce its global workforce by 20%, affecting around 620 people.
▪Co-CEO Eran Zinman stated the company is not planning any further workforce reductions.
▪The company expects to incur $45 million to $55 million in charges related to the restructuring.

AI-driven strategy shift

▪The company plans to reinvest the majority of savings from the layoffs into its people, products, AI, and future growth.
▪The AI Work Platform includes a no-code app builder, a customizable AI agent, a workflow automation tool, and a chatbot.
▪Monday.com's co-CEO Eran Zinman stated the decision "was not made to reduce costs or replace people with AI."
▪The layoffs are intended to align Monday.com with its "strategic focus on the AI Work Platform."

Organizational restructuring

▪The restructuring aims to create a flatter organization with fewer management layers and more autonomous teams.
▪A new go-to-market model will increase on-site presence and provide deeper implementation support for customers adopting AI.

Employee severance packages

▪Monday.com committed to providing departing employees with a "generous support package" and assistance in finding new jobs.
▪In a memo to staff, the co-CEOs stated the layoffs were not a reflection of individual performance or contribution.

Enterprise software market competition

▪According to Layoffs.fyi, a record 78% of companies conducting layoffs in 2026 have cited a need to refocus on AI.
▪Monday.com's stock has slumped roughly 75% in the last year.
▪Investors have expressed "SaaSpocalypse" worries, fearing that AI could weaken corporate reliance on SaaS project management tools.
▪Monday.com joins other tech companies like Snap and Block in citing a pivot to AI as a reason for layoffs.