Monday.com cuts 630 jobs in pivot to AI agents for enterprise

Monday.com is shedding 20% of its workforce — about 630 people — in a restructuring that CEO Roy Mann framed as a necessary step to create a “leaner, more focused operating model” centered entirely on its AI Work Platform. This isn’t a cost-cutting panic move; it’s a deliberate bet that enterprise customers want AI agents working alongside their human teams, not just bolted-on chatbot features. The company has already redesigned its entire product around this belief, bundling a no-code app builder, customizable AI agents, workflow automation, and a chatbot that handles tasks like report generation and dashboard updates.

The scale of the layoffs puts Monday.com in grim but familiar company. Tech firms have been wielding the ax at a pace not seen in years, with May breaking records for monthly cuts. According to Layoffs.fyi, a staggering 78% of companies that laid people off this year explicitly cited a need to redirect resources toward AI. That’s more than 122,000 tech roles eliminated in 2026 alone — and the year isn’t even half over.

Monday.com isn’t being subtle about the tradeoff. The restructuring will cost between $45 million and $55 million in charges, a sum that buys them a thinner org chart and, they hope, faster execution on AI. The message to investors is clear: the company sees its future not as a project management tool, but as a platform where AI agents are first-class collaborators. That’s a risky proposition when most enterprises are still figuring out if they trust AI to do more than summarize meeting notes.

What’s worth watching is whether this bet pays off before the talent exodus hurts them. Firing 630 people to double down on AI sounds decisive in a boardroom deck, but on the ground it means losing institutional knowledge. The AI Work Platform might be the company’s future, but you still need people who understand the messy reality of how teams actually work to build something that doesn’t just demo well but holds up under real use.