Monday.com is laying off around 630 employees — about 20% of its workforce — as the project management software company pivots towards artificial intelligence (AI) that automates tasks and makes decisions without human input. The company confirmed this development this week.
What’s Happening
The Tel Aviv-based company informed employees that it’s cutting jobs to “support a leaner, more focused operating model” while transitioning to what it calls an “AI Work Platform.” Essentially, Monday.com aims to rebuild its core product around AI-powered automation instead of the manual task boards and workflow tools that originally attracted businesses.
This isn’t just a case of a struggling company trimming its workforce. Monday.com has been profitable and growing. This is a calculated move: the company believes that the future of work management software involves AI doing the coordination, and they’re willing to let go of a fifth of their staff to reach that goal more quickly.
Think of it like a restaurant deciding to go fully automated. They’re not closing because business is failing; they’re letting go of staff they don’t think they’ll need once the robots take over the orders.
Why This Matters for the Broader Tech Industry
Monday.com isn’t alone in this shift. Many companies in the software industry are citing AI investment as a reason for workforce reductions. The trend is clear: announce a focus on AI, cut jobs, and frame the layoffs as a strategic pivot rather than a retreat.
What sets Monday.com apart is the scale of these layoffs. A 20% reduction in one go is considerable. Most companies making similar changes typically cut 5-10% at a time. Reducing a fifth of your workforce in one move signals a belief that the shift to AI-first products is happening quicker than expected.
What This Means for Monday.com Users
If your company relies on Monday.com for project and workflow management, here’s what you can expect in the near and medium term:
- More AI features, faster: The resources freed up from existing teams will likely go towards developing the AI Work Platform. So, anticipate more automation options, AI-suggested task assignments, and smart scheduling tools in the product.
- Possible support slowdowns: With a smaller team, customer support and account management response times might slow down before they improve. If your organization depends heavily on Monday.com’s support team, keep an eye on this situation.
- Pricing pressure: As AI features become integral to the product, Monday.com might rethink its pricing structure, potentially placing the most valuable AI tools behind higher-cost plans.
| Monday.com By The Numbers | |
|---|---|
| Employees laid off | ~630 |
| Percentage of workforce cut | 20% |
| Stated reason | AI Work Platform focus |
| Company headquarters | Tel Aviv, Israel |
Community Reactions
“20% in one shot is not a ‘strategic pivot,’ that’s a fire sale on human labor while the AI hype is still hot enough to justify it to shareholders.”
“I’ve used Monday for three years. Every time they ‘focus on AI,’ they just add a chatbot to a feature and call it revolutionary. Let’s see if this time is different.”
The Bigger Picture
Monday.com’s layoffs come during a wave of similar actions across the software industry. The thinking is that AI tools can now take on tasks that used to require dedicated human teams, meaning fewer employees are needed to build and maintain software products. Whether this actually leads to the promised benefits or just results in fewer employees with mediocre AI features remains to be seen.
What’s evident is that “we’re focusing on AI” has become the new way of saying “we’re restructuring for efficiency.” For those affected, both phrases mean the same thing: jobs are being cut.
For more on this story, check out TechCrunch’s full report on the Monday.com layoffs. For insight on how other companies are managing similar AI transitions, CNET has been tracking the broader tech spending environment.
What To Watch
- Monday.com’s next earnings call: Executives will probably outline what the AI Work Platform includes and when users can expect it. Earnings calls are where vague promises often receive concrete timelines.
- Competitor response: Asana, Notion, and ClickUp — Monday.com’s main competitors in project management — will be watching closely. If Monday.com’s AI strategy works, expect similar shifts from competitors in the next 6-12 months.
- User retention data: Watch to see if Monday.com’s customer numbers remain stable in the quarters following this announcement. A company can cut staff and gain AI features, but if customers leave, that math doesn’t add up.
- Further industry layoffs: Monday.com’s decision may indicate a second wave of AI-driven job cuts across the SaaS (Software as a Service) sector throughout the rest of 2026.
Ava Mitchell
Ava Mitchell is a digital culture journalist at Explosion.com covering social media platforms, streaming services, and the creator economy. With 4 years reporting on TikTok, Instagram, YouTube, and the apps that shape daily life, Ava specializes in explaining platform policy changes and their impact on everyday users. She previously managed social media strategy for a tech startup, giving her firsthand experience with the platforms she now covers.
