The project management provider Monday.com from Tel Aviv is radically restructuring its business: One-fifth of the workforce will lose their jobs as part of a new AI strategy. The publicly traded company on Nasdaq estimated the costs of the restructuring in a mandatory filing to the US Securities and Exchange Commission (SEC) at $45 to $55 million.
Monday.com restructures its product around AI agents
According to the Form 6-K filed with the SEC, the layoffs affect around 620 of the approximately 3,000 employees worldwide, including about 350 at the headquarters in Tel Aviv. The restructuring costs of $45 to $55 million are primarily attributed to severance payments and abandoned office space, and are expected to be mostly recorded in the second half of 2026.
At the center of the restructuring is a new AI work platform: a no-code app builder, customizable AI agents, an automation for workflows, and a chatbot that autonomously generates reports and updates dashboards. This responds to the trend towards agent-based software, where individual tools increasingly perform tasks independently rather than just providing suggestions. Monday.com was founded in 2012 and went public in 2021 with a valuation of $6.8 billion; the company is among the most well-known Israeli software exports. Despite the cuts, Monday.com confirmed its revenue forecast for 2026 of 19 to 20 percent growth compared to the previous year and announced plans to continue hiring in selected strategic areas.
Zinman rejects cost-cutting allegations
Co-founder Eran Zinman wrote to employees, according to a memo published by the Times of Israel, that the company is shifting from merely managing work to actually completing work together with AI systems. The restructuring is “not intended to cut costs or replace people with AI,” Zinman said. Instead, Monday.com plans to reinvest the majority of the saved funds into personnel, product, and AI. The company also announced plans to reduce management levels and give remaining teams more autonomy to respond more quickly to the use of AI agents in day-to-day operations.
The market has so far reacted only moderately to this portrayal: The Monday.com stock has fallen by more than half since the beginning of 2026, with a market value now around $3.1 billion instead of the $6.8 billion at the IPO in 2021. Industry experts are now observing similar restructurings towards flatter hierarchies at several software providers that are aligning their organizations for the use of AI agents. Whether investors will follow the restructuring in the long term remains open.
Numerous tech companies justify cuts with AI
Monday.com is not alone in this: A list of ongoing layoffs from TechCrunch counted 21 major tech companies by the end of July 2026 that cited artificial intelligence as the reason for job cuts – including Amazon with around 16,000, Meta with around 8,000, and Microsoft with about 4,800 positions. Other mentioned companies like Cisco, Oracle, and PayPal have affected shares ranging from five to 20 percent of their respective workforces. At Meta, the company’s AI-driven selection process for layoffs is already causing legal disputes: 26 employees are suing in federal court. According to an analysis by the Financial Times, cited by TechCrunch, nearly 140,000 tech jobs have been lost in the US since the beginning of 2026.
How much AI actually replaces jobs remains controversial: A study by the Indeed Hiring Lab finds a 15 percent increase in US software jobs since February 2025, while the total number of job postings in the country has decreased. Companies citing AI as a reason for job cuts lagged nearly 10 percentage points behind the Nasdaq on average within 30 trading days after their announcement – an indication that investors are skeptical of the narrative.
It remains unclear how many of the 21 cases mentioned this year are actually due to more productive AI tools – and how many cuts are primarily rhetorically packaged as an AI strategy to reassure investors. It will be crucial whether Monday.com maintains its growth forecast despite the restructuring: Only then could the narrative of a more productive, AI-supported company be distinguished from a mere cost-cutting measure with a new label.
