Senior Executives Depart Israeli Software Firm monday.com Amid Restructuring

A wave of departures among senior management is expected at the Israeli software company monday.com in the coming period, driven by an organizational restructuring and a strategic focus on developing an AI-powered work platform. According to information obtained by Calcalist, Orly Stern Yitzhaki (VP Product), Sergey Liakhovetski (VP Engineering), and Sithuvan Amir (VP Product) are slated to leave the company within the next month. Lior Zaguri (Senior Director of IT), who has been with the company for six years, is also expected to depart at the end of the month. These departures follow a broader organizational change announced by monday.com in July, which included a reduction of approximately 20% of its global workforce, estimated at 620-630 employees. This move is part of the company's strategic shift from software that helps people manage their work to a platform where humans and AI tools collaborate on tasks.

The company stated that the restructuring aims to create a more focused and leaner organizational structure while enabling continued investment in strategic AI-related areas. monday.com plans to continue hiring in key fields throughout 2026. The company explained that the change is not solely a cost-cutting measure but an adaptation to evolving trends in enterprise software development and consumption. The restructuring is significant, with the company estimating net costs of $45-55 million related to the program, including severance payments and office-related expenses. The company anticipated completing the majority of this plan by the end of 2026.

Financially, monday.com reported second-quarter revenues of $364.6 million, a 22% increase from the previous year. First-half revenues reached approximately $715.9 million, up 23% year-over-year. The company also noted growth in its enterprise client base and a doubling of annual recurring revenue from its AI products compared to the first quarter, contributing 17% to the increase in total annual recurring revenue. Net income under GAAP for the second quarter was $3.46 million, up from $1.57 million in the same period last year. First-half net income was around $31.5 million, compared to $29 million in the prior year. Adjusted operating income (Non-GAAP) for the second quarter was $61.1 million, up from $45.1 million year-over-year. However, the reports included restructuring expenses of about $21.4 million in the first half of the year, partly related to exiting office spaces in Israel.

Stock performance reflects market challenges. The monday.com stock (MNDY), traded on Nasdaq, closed at $94.30 on October 15, after an 7.8% daily increase. Its market capitalization was approximately $4 billion at that time. Despite the daily gain, the stock has fallen about 36% since the start of 2026 and approximately 47% over the past year, according to MarketBeat data. Its market cap is significantly lower than its end-of-2025 level of about $7.6 billion.

In response, monday.com stated, "monday.com announced last summer an organizational change process to prepare the company for the next stage of its growth. Processes of this nature involve management decisions by the company, alongside personal choices by managers regarding their future paths. Accordingly, several managers are now concluding their roles, each under their own circumstances. We thank them for their significant contribution and extensive work for the company over the years."