Monday.com is cutting 20% of its workforce as part of a restructuring plan to focus on an AI-driven growth strategy.
Key facts
- •Monday.com is laying off over 600 employees, representing 20% of its total workforce.
- •The company expects to spend between $45 million and $55 million on restructuring charges.
- •U.S. tech companies have cut nearly 140,000 jobs so far in 2026, according to Financial Times analysis.
- •Financial Times data suggests companies citing AI as a reason for layoffs have underperformed the Nasdaq by nearly 10% in the 30 days following their announcements.
- •Meta previously moved 7,000 employees into AI-focused roles while laying off 8,000 others earlier this year.
Monday.com announced this week that it will lay off approximately 20% of its workforce, totaling over 600 employees. The company stated in an SEC filing that the job cuts are part of a restructuring plan designed to support a leaner operating model and an ongoing transformation of its product and go-to-market strategy. The move is tied to the company's commitment to an AI-driven growth strategy, which it has been developing since rebranding around a platform-wide AI push roughly a year ago.
By the numbers
Restructuring and Financial Outlook
Monday.com co-founder Eran Zinman stated in a LinkedIn memo that the layoffs were not intended to reduce costs or replace staff with AI, but rather to adapt the organization to its AI-first vision. The company expects to incur between $45 million and $55 million in net restructuring charges. Despite the workforce reduction, Monday.com projects year-over-year revenue growth of up to 20% for 2026.
Broader Industry Trends
The technology sector has seen nearly 140,000 job cuts in the U.S. since the start of 2026, according to Financial Times analysis. Major companies including Amazon, Oracle, Meta, and Microsoft account for nearly 50,000 of these reductions as they invest heavily in AI data centers. While some firms are shedding staff, others like Anthropic and OpenAI are hiring rapidly, and some companies are shifting existing employees into new AI-focused roles rather than eliminating positions entirely.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by TechCrunch.
