Israeli workplace software maker Monday.com will lay off hundreds of employees as part of a restructuring plan to refocus investment in AI projects.
The company said it will reduce its workforce by 20%, or about 630 people, to “support a leaner and more focused operating model” as it focuses on its AI work platform.
Earlier this year, Monday.com made a major pivot to making its AI platform a core offering and redesigned its entire offering, based on the idea that enterprise customers increasingly want AI agents to work alongside their employees. The AI Work Platform currently consists of a no-code app builder, customizable AI agents, workflow automation tools, and chatbots that can perform tasks such as generating reports and updating dashboards.
The company joins a number of large technology companies that have laid off hundreds of thousands of people as they seek to invest more in AI. According to Layoffs.fyi, tech sector layoffs in May were the highest monthly figure seen in years, with a record 78% of companies citing a need to refocus AI-related initiatives as the reason for layoffs this year.
More than 122,000 technical jobs will be cut by 2026, according to data from Layoffs.fyi.
Monday.com expects the restructuring to result in costs of $45 million to $55 million.
