Israeli workplace software developer Monday.com has announced a significant workforce reduction, impacting hundreds of employees, as it undertakes a strategic restructuring designed to reallocate its investments towards artificial intelligence initiatives.
The company confirmed it is cutting approximately 630 positions, representing 20% of its total workforce. This move aims to foster "a leaner, more focused operating model" as Monday.com intensifies its concentration on its evolving AI Work Platform.
Earlier this year, Monday.com made a decisive shift to position its AI platform as a central offering, completely redesigning its product suite. This strategic pivot is driven by the conviction that enterprise clients are increasingly seeking AI agents to collaborate seamlessly with their human teams. The current AI Work Platform features a no-code application builder, a highly customizable AI agent, an advanced workflow automation tool, and a versatile chatbot capable of executing tasks such as report generation and dashboard updates.
Monday.com's decision aligns with a broader trend across the technology sector, where numerous major firms have collectively shed hundreds of thousands of jobs, often citing a strategic imperative to boost investment in AI. Data from Layoffs.fyi indicates that tech layoffs in May reached a monthly peak not witnessed in years, with a record 78% of companies attributing their workforce reductions this year to the need to reorient efforts towards AI.
According to Layoffs.fyi data, over 122,000 tech roles have been eliminated across the industry so far this year.
The company anticipates incurring charges ranging from $45 million to $55 million as a direct consequence of this comprehensive restructuring effort.
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