Monday.com Cuts 20% of Workforce Amid AI-Driven Organizational Restructuring

Israeli tech giant Monday.com announced on Wednesday a significant organizational restructuring that will result in the layoff of approximately 620 employees, about 20% of its global workforce. This decision follows the company's largest product transformation in recent months, centered on redesigning its platform around an AI-based work platform vision.

Monday.com explained that the integration of AI technology fundamentally changes customer expectations and opens a new emerging market where companies that act faster and stay closer to their customers gain a competitive edge. To align with this product vision and enhance speed and focus, the company is flattening its organizational structure by reducing management layers to create smaller, autonomous teams that enable faster decision-making and clearer project ownership.

The company is also adopting a new Go-To-Market model to support existing customers transitioning to AI at their own pace while addressing growing demand from new customers using AI products daily. Co-CEOs Roy Man and Eran Zinman emphasized in a letter to employees that this is not a short-term cost-cutting move or an AI-driven efficiency measure but a strategic resource reallocation to invest in personnel, product development, AI engines, and future growth.

Monday.com expressed deep appreciation for the departing employees’ professionalism and contributions and committed to supporting them with financial assistance, accelerated stock vesting, continued healthcare coverage, and emotional support. The CEOs also reached out to other tech companies currently hiring, highlighting the high skill level of the affected employees and pledging to help connect them with new opportunities.