Monday.com Cuts 630 Jobs to Rebuild Around AI Work Platform

Quick Facts

• Monday.com is cutting approximately 630 employees, or 20% of its workforce, in the most sweeping restructuring in its 14-year history.
• The restructuring will cost between $45 million and $55 million and is expected to be substantially complete by year-end 2026.
• The company reaffirmed 19% to 20% revenue growth for 2026 and raised its non-GAAP operating margin forecast to 15%, up from 13%.

Monday.com is laying off roughly 630 employees as it rebuilds its operations around what it calls an AI Work Platform. The cuts represent 20% of the company’s 3,155-person workforce, with approximately 350 of those positions based in Tel Aviv.

Co-CEOs Roy Mann and Eran Zinman called the decision “the most painful we have made since founding monday.com — yet we are certain it is the right one” in a letter to employees. Zinman added on LinkedIn: “Without a fundamental change in how we operate, we will not be able to compete and win that market.”

The restructuring spans product development, marketing, and go-to-market functions. Monday.com said it plans to keep hiring in AI engineering and product development through the remainder of 2026.

The Platform Shift

Monday.com announced its AI Work Platform on May 6, repositioning the product from a work-tracking tool to one that performs work directly. Native AI agents can draft marketing campaigns, qualify sales leads, triage support tickets, run project workflows, and handle budget approvals — all under human oversight within existing security and permissions controls.

The company also added one-click connectors to Anthropic’s Claude, OpenAI’s ChatGPT, Microsoft Copilot, and Google Gemini. Monday.com acquired voice AI company OneAI to control voice agent technology in-house rather than depend on outside partners.

Alongside the platform shift, the company introduced consumption-based pricing that ties customer payments to AI agent usage, a model that deepens ties with high-volume customers but introduces revenue variability.

Financial Picture

Restructuring charges break down to $30 million to $35 million in severance and benefits, plus another $30 million to $35 million tied to office space impairments. Roughly $15 million in non-cash share-based compensation credits will partially offset those costs.

Despite the charges, monday.com raised its full-year profitability outlook. The company now expects a non-GAAP operating margin of approximately 15% for 2026, up from a prior forecast of 13%, while holding its revenue growth guidance at 19% to 20%.

Shares rose about 2.3% in premarket trading after the announcement. The company reported $351.3 million in Q1 2026 revenue, up 25% year over year, with net income of $28 million. Monday.com holds approximately $1.2 billion in net cash.

A Brutal Stock Decline

The layoff news comes after a punishing stretch for monday.com’s stock. Shares traded above $300 less than two years ago and now change hands near $73 — a drawdown of roughly 80% from their peak. The broader software sector shed $285 billion in market value during early 2026 as investors questioned whether traditional seat-based SaaS pricing could survive the shift to AI agents.

The co-founders addressed that concern directly, saying the restructuring was “not made to reduce costs or replace people with AI” but to align the company’s operations with a new model where AI performs work rather than just manages it. Monday.com competes in this space against Atlassian, ServiceNow, and Salesforce.

Read more: Monday.com lays off hundreds to focus on AI