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
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