Monday.com lays off hundreds to focus on AI

What happened

On July 22, 2026, Monday.com announced the layoff of approximately 630 employees — 20% of its global workforce — as part of a strategic restructuring toward its AI Work Platform.

Context and impact

The company describes this as the biggest product transformation in its history: a shift from a work management platform to a model where employees collaborate with AI agents. Leadership emphasized this is not about replacing people with AI, but about concentrating resources on strategic AI initiatives. The restructuring reflects growing pressure on SaaS companies to adapt to the agent era.

Details

• Layoffs: ~630 employees, 20% of global workforce
• Restructuring charges: $45-55 million
• Non-GAAP operating margin 2026: raised outlook to ~15%
• Despite cuts, company plans continued hiring in strategic AI areas
• Leadership: transition from a work management tool to a platform where humans and AI agents perform work together