source: techcrunch ai: monday.com lays off hundreds to focus on ai
level: business
monday.com is laying off roughly 630 employees, or 20% of its staff, as part of a restructuring plan to shift investments toward its ai work platform. the israeli workplace software maker said the cuts will support a leaner operating model focused on ai projects. the company recently redesigned its entire product around the belief that enterprise customers increasingly want ai agents to work alongside their employees.
the ai work platform includes a no-code app builder, a customizable ai agent, a workflow automation tool, and a chatbot that can generate reports and update dashboards. monday.com joins a wave of tech firms that have laid off hundreds of thousands of workers while increasing ai spending. according to layoffs.fyi, 78% of companies cited refocusing on ai as a reason for job cuts this year, with over 122,000 tech roles eliminated so far in 2026.
the restructuring will cost monday.com between $45 million and $55 million in charges. the move reflects a broader industry trend where firms are reallocating resources to build ai capabilities, betting that automated tools and agents will drive future growth. layoffs in tech hit a monthly high in may, underscoring the pressure to adapt to ai-driven market shifts.
why it matters: the layoffs show how companies are reallocating resources to build ai tools, affecting workforce planning and signaling where ai investment is headed.
source: techcrunch ai: monday.com lays off hundreds to focus on ai