Big cuts are coming for Monday.com.
The enterprise software company plans to cut 20% of its workforce, according to a Form 6-K it filed. The layoffs are meant to align the company with its “strategic focus on the AI Work Platform,” the disclosure said.
Monday.com joins the growing group of companies citing AI while announcing layoffs, like Snap and Block. Monday.com said that it was pursuing an “AI-driven growth strategy.”
“We entered a new era where AI is transforming the role of software, creating the greatest opportunity our industry has ever seen,” Monday.com cofounder and co-CEO Eran Zinman said in a note published to LinkedIn. “We have a new market to capture. Without a fundamental change in how we operate, we will not be able to compete and win that market.”
The changes mean Monday.com is becoming flatter with more autonomous teams, Zinman wrote.
As to whether the layoffs were driven by AI improvements, the co-CEO wrote that the decision “was not made to reduce costs or replace people with AI.”
While Monday.com plans to cut 20% of its workforce, it also said it plans to continue hiring in areas of focus.
It’s not immediately clear exactly how many workers will be affected. In its 2025 annual report, Monday.com said that it had 3,155 employees. Monday.com did not immediately respond to a request for comment from Business Insider.
The company’s stock rose throughout the morning, though it has since ticked back down. The stock has slumped roughly 75% in the last year.
Monday.com provides project management software to enterprises. This category is the target of growing “SaaSpocalypse” worries. Investors and analysts fret that AI and vibe coding could weaken companies’ reliance on these tools.
Read the Monday.com co-CEO’s full note:
Hi everyone, Over the past nine months, we have shifted our core vision moving from managing work to doing the work for our customers, with people and AI agents working together in one workspace. This has required us to change our product, our strategy, and how we serve our customers. But it became clear that changing our strategy and product is not enough. The organization we built for our previous chapter is not the organization that fits the new AI era. Today, we are announcing the very difficult decision to reduce our global workforce by ~20%, affecting around 620 people. This is the most painful decision we have made since founding monday.com – yet we are certain it is the right one. We made it. We own it. And we take full responsibility for it. The people leaving are talented colleagues and friends. They helped build this company, support our customers, and create a culture we are deeply proud of. We are incredibly grateful to them, and we know that nothing we say can lessen the impact this will have on them and their families. We are not making this change to protect what we have. We are making it to go all in on what monday.com can become. Why are we making this change?
We entered a new era where AI is transforming the role of software, creating the greatest opportunity our industry has ever seen. We have a new market to capture. Without a fundamental change in how we operate, we will not be able to compete and win that market. To fully realize this opportunity, and ensure monday.com is positioned to lead in this landscape, we need to move faster, execute more decisively, take on new challenges, respond quickly to market changes, and empower people in the company to create greater impact. Some of the things we are changing in monday:
- A flatter organization – We are reducing management layers, creating more empowered teams, and enabling faster decision-making.
- More autonomous teams – We are moving from teams with many dependencies to smaller groups with broader ownership and greater authority to execute.
- A new go-to-market model – Our new offering is opening a new market, and that market requires us to work differently. New and existing customers increasingly expect deeper implementation support as they adopt AI. We will work more closely with customers, increase our on-site presence, create new roles, and adapt many existing ones.
Improving margins was not the purpose of this decision. We intend to reinvest the vast majority of the savings in our people, our products, AI, and future growth. For the people leaving monday.com
Thank you. Thank you for all your hard work, for the significant impact you have made, for caring so deeply about monday.com, and for always being willing to help and lend a hand. We know this is part of our culture, and it is something we consistently hear from everyone who interacts with people at monday.com. We want to be very clear: this decision is not a reflection of your performance, your contribution, or your value. It is the result of a management decision about how to structure the company for its next chapter. We are committed to supporting you through this transition with care, respect, and meaningful assistance. We will do everything we reasonably can to help you find your next opportunity, and we will provide you with a generous support package. To companies that are hiring: we recommend these people wholeheartedly. They are exceptional professionals and teammates, and we will help connect them with organizations looking for outstanding talent. For the people staying
It is not easy to be part of such a significant change or to see colleagues and friends leave so quickly. We understand how difficult this will be. We also owe you clarity about what this change means. The change is not about asking fewer people to do the same amount of work. We are making real choices about what we will stop doing. We will simplify how we work, remove unnecessary friction, and give teams more authority to make decisions. The company that comes out of this change will have clearer priorities, fewer layers, faster decisions, and greater ownership. We are deeply confident about our future
Our path is very clear to us. This is a change we have chosen to make, and we are taking full responsibility for it. We have never seen such a significant opportunity in software, driven by such exciting technology. Nothing gives us more confidence than seeing how new and existing customers are responding to our new offering, and seeing adoption of our AI products accelerate. Every week, we see more evidence that our strategy is the right one. Customers are embracing our new vision, adoption of our AI capabilities continues to accelerate, and our confidence continues to grow. Our momentum is strong, and we believe we are on the right path to success on a massive market opportunity. To ease the uncertainty around this we will send all employees an email message within the next hour, followed by a personal call from one of your managers. For all managers – we know how difficult it is to process this personally, even as you continue to lead your teams. We have every confidence in your leadership and know you’ll approach these conversations with the care, clarity, and respect that define our culture. Thank you for being there for your people during this transition. Thank you, Roy & Eran During the change process, we received a few questions we’d like to clarify:
- Is the reason we are doing this reduction is to improve margins? No. Improving margins was not the purpose of this decision. We intend to reinvest the vast majority of the savings in our talent, our products, AI, and future growth.
- Do we plan more reductions in the future? We designed this change to create the organization we believe we need for our next chapter. We are not planning any further workforce reductions.
- Is this reduction driven by AI improvements? No. While we are seeing significant value from AI internally, this decision was not made to reduce costs or replace people with AI. We see internal AI adoption as an accelerator of our growth. This change was made to adapt the company to our new vision.
- Are people expected to work harder now that we have less people? Not harder – better. To give one example, we had many situations where work that could have been done in a few days took many months with multiple meetings and endless friction. This wasn’t people’s fault and everyone was frustrated by this. Our new org changes ownership to allow people to make decisions and move fast.
- You’re talking about the new AI products, what about our existing market and customers? We are lucky to have amazing customers that love our product and actually use these words to describe it. We need to be there for them with our new vision of doing the work with AI and not just managing it. They are also undergoing change and we will invest heavily to help them – they are our biggest asset.
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