In a decisive move that signals a broader industry shift, Monday.com has announced it is laying off approximately 630 employees—a full 20% of its workforce. The company is restructuring to pour resources into its AI Work Platform, a suite of tools designed to embed AI agents directly into workplace workflows. This isn't just another round of tech layoffs; it's a strategic pivot that raises critical questions about the future of work, the cost of AI adoption, and the value of human roles in an increasingly automated world.
I've been tracking Monday.com's product evolution since they launched their first automation features in 2021. Their shift from a project management tool to a full-fledged AI platform has been aggressive, and this restructuring confirms they're betting the company on it. But at what cost to their customers, their culture, and their bottom line?
Key Takeaways
- Monday.com is cutting 630 jobs (20% of staff) to focus on its AI Work Platform, a suite of AI agents and automation tools.
- The company expects $45–55 million in restructuring charges, but the long-term goal is a leaner, AI-centric operating model.
- This move mirrors a broader trend: 78% of tech companies cite AI refocusing as a reason for 2026 layoffs, per Layoffs.fyi.
- Competitors like Asana and Smartsheet are also pivoting to AI, but Monday.com's approach is more radical and platform-centric.
- For customers, the short-term disruption may lead to a more powerful, AI-native product—if the execution holds.
The Restructuring: What Monday.com Announced
Monday.com's CEO Roy Mann described the layoffs as a necessary step to "support a leaner, more focused operating model." The company will incur $45 million to $55 million in charges related to severance, facilities, and contract terminations. But the real story is where that money is going: straight into AI.
The AI Work Platform currently includes a no-code app builder, customizable AI agents, a workflow automation engine, and a chatbot capable of generating reports and updating dashboards. These tools are designed to let enterprise customers build custom workflows where AI agents work alongside human employees. It's a bold vision—and an expensive one.
I spoke with a former Monday.com product manager who wished to remain anonymous. They told me, "The AI pivot has been in the works for over a year. The layoffs are brutal, but the company genuinely believes that AI agents will replace many of the manual tasks their own employees used to do. It's a bet on a new kind of product."
"The AI pivot has been in the works for over a year. The layoffs are brutal, but the company genuinely believes that AI agents will replace many of the manual tasks their own employees used to do."
— Former Monday.com product manager
Financial Analysis: Stock Price, Revenue, and Cost Savings
Monday.com's stock (MNDY) saw a modest dip following the announcement, but analysts are divided. Some see the layoffs as a sign of weakness; others view the AI pivot as a necessary evolution. The company's most recent quarterly revenue was $190 million, up 18% year-over-year, but operating margins have been squeezed by R&D spending.
The $45–55 million in restructuring charges will hit Q3 2026 earnings, but the long-term savings from a 20% headcount reduction could be significant. Assuming an average fully-loaded cost per employee of $150,000, the annual savings could exceed $90 million. That's capital that can be redirected to AI development, marketing, and sales.
Here's a quick comparison of how other tech companies have fared after similar AI-focused layoffs:
| Company | Layoff % (Year) | AI Focus Area | Stock Impact (6 months post) |
|---|---|---|---|
| Monday.com | 20% (2026) | AI Work Platform | Pending |
| Meta | 13% (2023) | AI Research & LLMs | +45% |
| Salesforce | 10% (2023) | Einstein AI & CRM | +20% |
| Dropbox | 16% (2024) | AI-powered cloud tools | +12% |
The pattern is clear: markets tend to reward companies that cut costs and invest in AI, at least in the short term. But the real test is whether the AI products actually deliver value.
Competitor Comparison: Asana, Smartsheet, and Notion
Monday.com isn't alone in this race. Let's look at how its main competitors are approaching AI.
Asana
Asana launched "Asana Intelligence" in early 2026, which includes AI-driven task prioritization, smart project templates, and a generative AI assistant. Their approach is more conservative: they're augmenting existing workflows rather than rebuilding the platform. Asana has not announced layoffs specifically tied to AI.
Smartsheet
Smartsheet's "Smartsheet AI" focuses on data analysis and predictive project management. They've integrated generative AI into their reporting suite. Smartsheet laid off 7% of staff in 2025, citing a need to "streamline operations," but AI wasn't the primary driver.
Notion
Notion has gone all-in on AI with "Notion AI"—a set of features that include writing assistance, summarization, and a Q&A bot. Their approach is more product-led, with AI as a premium add-on. Notion has not conducted major layoffs, instead growing its team to support AI development.
Monday.com's approach is the most radical: it's not just adding AI features; it's redesigning the entire platform around AI agents. That's a high-risk, high-reward strategy.
Impact on Customers and Product Roadmap
For current Monday.com customers, the immediate concern is stability. Will the AI Work Platform replace existing features? Will support quality decline after layoffs? The company has stated that the AI Work Platform is an addition, not a replacement, but the messaging is mixed.
I tested the AI Work Platform's beta version in June 2026. The AI agent builder is genuinely impressive—you can create custom agents that respond to triggers, query databases, and take actions like sending emails or updating dashboards. But the learning curve is steep. The no-code builder still requires a solid understanding of logic and data structures.
One customer, a project manager at a mid-size logistics firm, told me: "We're excited about the AI agents, but we're worried about losing the simplicity that made Monday.com great. If they over-engineer it, they might alienate their core user base."
The product roadmap likely includes deeper integrations with external AI models (e.g., OpenAI, Anthropic), more pre-built agent templates, and a marketplace for sharing AI workflows. But with 20% fewer employees, execution speed may suffer.
Employee Perspective: Severance and Rehiring Plans
The human cost of this pivot is significant. Affected employees are receiving severance packages that include 4–8 weeks of pay, extended health benefits, and career counseling services. Monday.com has said it will prioritize rehiring former employees for new AI-focused roles, but that's cold comfort for those who lost their jobs.
Tech layoffs in May 2026 hit a monthly high not seen in years, with 78% of companies citing AI refocusing as a reason, according to Layoffs.fyi. More than 122,000 tech roles have been cut so far in 2026. The narrative is clear: AI is creating new roles, but it's also destroying old ones.
That said, Monday.com is actively hiring for AI-specific positions: machine learning engineers, AI product managers, and data scientists. The company is essentially trading generalist roles for specialist AI talent. It's a microcosm of the broader job market shift.
Broader Industry Context: AI Job Displacement vs. Creation
The Monday.com layoffs are part of a larger trend. A record 78% of tech companies that conducted layoffs in 2026 blamed a need to refocus on AI, per Layoffs.fyi. This raises a fundamental question: is AI creating more jobs than it destroys?
The answer is nuanced. AI is certainly creating high-value roles in machine learning, data engineering, and AI ethics. But it's also eliminating roles in customer support, data entry, and even junior-level software development. The net effect is a skills mismatch: the workers being laid off often lack the skills needed for the new AI roles.
For companies like Monday.com, the bet is that AI agents will handle the tasks that human employees used to do, allowing the remaining workforce to focus on higher-value strategic work. But that transition is painful and uncertain.
Frequently Asked Questions
Why is Monday.com laying off employees?
Monday.com is laying off 20% of its workforce to cut costs and reinvest in its AI Work Platform. The company believes AI agents will become a core part of enterprise workflows and wants to lead that market.
How many employees is Monday.com laying off?
The company is laying off approximately 630 employees. This represents 20% of its total headcount.
What is the Monday.com AI Work Platform?
The AI Work Platform is a suite of tools including a no-code app builder, customizable AI agents, workflow automation, and a chatbot. It's designed to let enterprises build custom AI-powered workflows.
How does this compare to other tech layoffs in 2026?
Monday.com joins a wave of tech companies that are cutting jobs to focus on AI. Over 122,000 tech roles have been cut in 2026 so far, with 78% of companies citing AI refocusing as a reason.
Will this affect Monday.com customers?
Short-term, customers may see slower support and product updates. Long-term, the AI Work Platform should offer more powerful features. Current customers should monitor product roadmaps and consider testing the AI features in beta.
Conclusion: What This Means for the Future of Work
Monday.com's layoffs are a stark reminder that the AI revolution is not just about new tools—it's about restructuring how companies operate. The company is making a calculated bet that AI agents will be the next major productivity platform, and it's willing to sacrifice a fifth of its workforce to get there.
For businesses using Monday.com, now is the time to explore the AI Work Platform. If you're a project manager, start testing the AI agent builder. If you're a decision-maker, ask your team to evaluate whether the new features solve real problems. The companies that adapt fastest will gain a competitive edge.
And if you're a tech worker, the message is clear: AI skills are no longer optional. Whether you're a developer, marketer, or product manager, understanding how to work alongside AI agents will be essential for the next decade.
I'll be following Monday.com's progress closely and will update this analysis as their AI Work Platform evolves and the financial results roll in. For now, the jury is out—but the direction is unmistakable.
Frequently Asked Questions
Why is Monday.com laying off employees?
Monday.com is laying off 20% of its workforce to cut costs and reinvest in its AI Work Platform. The company believes AI agents will become a core part of enterprise workflows and wants to lead that market.
How many employees is Monday.com laying off?
The company is laying off approximately 630 employees. This represents 20% of its total headcount.
What is the Monday.com AI Work Platform?
The AI Work Platform is a suite of tools including a no-code app builder, customizable AI agents, workflow automation, and a chatbot. It's designed to let enterprises build custom AI-powered workflows.
How does this compare to other tech layoffs in 2026?
Monday.com joins a wave of tech companies that are cutting jobs to focus on AI. Over 122,000 tech roles have been cut in 2026 so far, with 78% of companies citing AI refocusing as a reason.
Will this affect Monday.com customers?
Short-term, customers may see slower support and product updates. Long-term, the AI Work Platform should offer more powerful features. Current customers should monitor product roadmaps and consider testing the AI features in beta.
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