For the roughly 620 Monday.com employees notified this week, the distinction may matter less than the outcome: their roles are gone. On 22 July 2026, the Tel Aviv-based company filed a restructuring plan with the U.S. Securities and Exchange Commission, confirming it would cut approximately 20% of its global workforce. About half of those affected are based in Israel.
In a LinkedIn memo, co-founder and co-CEO Eran Zinman framed the decision as an offensive strategic move rather than a cost reduction. He stated explicitly that the cuts were not made to reduce expenses or to replace people with AI. The company says it will continue hiring in AI-focused roles and reinvest the majority of savings back into people, products, and growth.
The restructuring will cost Monday.com between $45 million and $55 million in net charges. That figure includes $30–$35 million in severance and employee benefits, similar amounts attributed to office space impairments — including a scaled-back expansion in Tel Aviv — and is partially offset by approximately $15 million in non-cash share-based compensation credits. Most of those charges are expected in the second half of 2026.
The company reaffirmed its full-year 2026 revenue growth guidance of 19–20% year over year, a target that was already in place before the announcement. Whether the restructuring disruption affects that figure is not yet known.
Monday.com has spent the past year rebuilding its product around what it calls an AI Work Platform — a suite that includes a no-code app builder, a customisable AI agent, workflow automation, and a reporting tool. It also launched Monday Ventures, an investment arm focused on AI startups, roughly a month before the layoff announcement. The company had previously slowed its annual hiring growth from 30% to 15% before reaching this point.
The backdrop is difficult. Monday.com's stock has lost more than 50% of its value so far in 2026 and has fallen roughly 75% from its 52-week high, part of a broad selloff in enterprise software companies facing investor anxiety that AI agents and development tools could make conventional SaaS platforms less necessary. Peer companies including Wix, which cut 20% of its workforce in May 2026, and Atlassian, which eliminated around 1,600 roles in March 2026, have made comparable moves.
The pattern extends well beyond Monday.com. According to data from Layoffs.fyi cited by TechCrunch, more than 122,000 tech roles have been cut in 2026, with a record 78% of companies citing AI refocusing as a reason. A Financial Times analysis found that U.S. tech companies have eliminated nearly 140,000 jobs since the start of the year, with Amazon, Oracle, Meta, and Microsoft alone accounting for close to 50,000 of those cuts.
The FT analysis also found that companies citing AI as a factor in layoffs have underperformed the Nasdaq by nearly 10% in the 30 trading days following their announcements — a detail that complicates the claim that AI-framed restructurings reassure investors. Whether AI is a genuine operational driver of these decisions or a convenient rationale remains contested. Research cited in a separate 2025 analysis attributed much of the recent wave of corporate workforce reductions to organisational uncertainty rather than demonstrated AI adoption.
What is not yet clear for Monday.com: which teams beyond Israel carry the largest share of the cuts, how many AI-focused roles will be added and when, and whether flattening its management structure will accelerate product development or enterprise adoption in any measurable way. The company has not provided a timeline for completing the reductions.
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