Monday.com cuts ~20% of workforce, restructures around AI strategy

Proactive | Wed, July 22, 2026 at 8:59 AM PDT | 2 min read

Ticker: MNDY

Monday.com (NASDAQ: MNDY) is cutting approximately 20% of its global workforce as the Israeli workplace software company restructures its operations around a shift toward AI-enabled collaboration between employees and autonomous agents.

The company will eliminate around 620 roles worldwide, according to a letter sent to employees by co-founders Roy Mann and Eran Zinman, who described the decision as the "most painful" since the company's founding.

Key Details

• Workforce reduction: Approximately 620 roles eliminated globally, with around 350 positions expected to be cut at Monday.com's headquarters in Tel Aviv and the remainder across global offices.
• Restructuring focus: The company will shift toward AI-powered workspaces where employees and AI agents work together to complete tasks.
• New roles created: Some existing roles will change, and new positions will be added as Monday.com expands AI-related products and increases customer support.
• Sales and customer operations: Changes will include deeper implementation support and greater on-site customer presence.

Financial Impact

Monday.com expects to incur between $45 million and $55 million in net restructuring charges, primarily related to severance costs and office space reductions. The company plans to reinvest savings from the restructuring into AI engineering and product development.

Strategic Rationale

The company emphasized that the layoffs are not intended as a cost-cutting initiative or a direct replacement of employees with artificial intelligence. Instead, the move reflects a broader organizational shift as the software industry adapts to changing customer expectations and AI-driven workflows.

"We entered a new era where AI is transforming the role of software, creating the greatest opportunity our industry has ever seen," Mann and Zinman wrote in the letter. "We have a new market to capture. Without a fundamental change in how we operate, we will not be able to compete and win that market."

The restructuring comes as Monday.com moves from its traditional role as a platform for managing work toward what it describes as an AI-powered workspace.

"Over the past nine months, we have shifted our core vision moving from managing work to doing the work for our customers, with people and AI agents working together in one workspace," the founders wrote.

Organizational Changes

The company said the transition requires changes beyond product development, including a new organizational structure designed around smaller, more autonomous teams and fewer management layers.

"It became clear that changing our strategy and product is not enough," the founders said. "The organization we built for our previous chapter is not the organization that fits the new AI era."

Updated Outlook

Alongside the restructuring announcement, Monday.com raised its full-year 2026 non-GAAP operating margin outlook to 15% from a previous forecast of 13%, while maintaining its revenue growth target of 19% to 20%.

Shares of Monday.com were little changed at $73 on Wednesday.