Monday.com cuts 20% of staff to focus on AI

Monday.com, an Israeli workplace software company, announced on July 22, 2026 that it is reducing its headcount by 20%, laying off about 630 staff members. The company describes the restructuring as part of a shift toward a "leaner, more focused operating model" centered on its AI Work Platform.

The pivot toward AI has been central to Monday.com's strategy since earlier in 2026. The company redesigned its entire product around the conviction that enterprise customers increasingly expect AI agents to work alongside their employees. The AI Work Platform comprises four main components: a no-code app builder for creating custom applications without coding, a customizable AI agent that businesses can configure for their specific needs, a workflow automation tool to streamline repeating tasks, and a chatbot capable of executing functions such as generating reports and updating dashboards.

Monday.com is not alone in this strategy. The company joins a cohort of large technology firms that have undertaken major layoffs to increase investment in artificial intelligence. According to Layoffs.fyi, tech layoffs in May 2026 reached a monthly high not seen in years. Across the industry, a record 78% of companies that have announced job cuts in 2026 have blamed a need to refocus their efforts around AI. Overall, more than 122,000 tech roles have been cut in 2026 so far.

The financial impact on Monday.com is substantial: the company expects to incur $45 million（約72億円） to $55 million（約88億円） in charges due to the restructuring. This cost reflects severance, infrastructure changes, and other separation expenses incurred as the company reshapes its workforce to match its new strategic focus.

Monday.com's 20% layoff is part of a larger industry recalibration toward artificial intelligence investment. The company redesigned its product strategy earlier in 2026 around the belief that enterprise customers increasingly want AI agents integrated with their workforce, rather than functioning as standalone tools. This belief underpins its AI Work Platform—a suite of no-code and automation features meant to let employees and AI agents collaborate within a single workspace.

The restructuring places Monday.com in a broader cohort: according to Layoffs.fyi, a record 78% of companies cutting jobs in 2026 have cited refocusing efforts around AI as a primary reason. This trend has manifested in more than 122,000 tech roles cut so far in 2026. Monday.com's $45 million（約72億円） to $55 million（約88億円） in expected restructuring charges signal that the company views this pivot as urgent enough to absorb significant near-term costs—a signal of confidence in the AI Work Platform's commercial potential.