Israeli workplace software company monday.com is reducing its workforce by approximately 20% as part of a restructuring centred on its AI Work Platform. Based on the company’s reported headcount at the end of 2025, the reduction could affect about 630 employees.
The company expects to incur between $45 million and $55 million in net charges from the plan. Monday.com said it will continue hiring in selected strategic areas throughout 2026.
Restructuring Includes Severance and Office Costs
Monday.com initiated the restructuring on July 22, according to a regulatory filing. The company said the changes would create a leaner operating structure while aligning its product development, marketing and sales activities with its AI plans.
The estimated charges include between $30 million and $35 million for severance, employee benefits and related costs. Monday.com also expects $30 million to $35 million in office-space impairment charges, partly offset by approximately $15 million in non-cash credits related to share-based compensation.
Co-founder and co-Chief Executive Eran Zinman told employees that the company would adopt a flatter structure with more autonomous teams. He said the decision was intended to position Monday.com for an AI-focused software market rather than replace employees with AI or reduce costs alone.
Company Rebuilds Products Around AI Agents
Monday.com announced earlier this year that it was repositioning itself from a work management service to an AI Work Platform. The platform is designed to let employees and AI agents perform tasks together across different departments.
Its products include monday vibe, a no-code application builder, and monday sidekick, an AI assistant that can create reports, update dashboards and complete workplace tasks. AI Blocks and AI Workflows provide additional automation within the platform.
Monday.com also introduced infrastructure in March that lets external AI agents access the platform and execute authorised work alongside human teams. The company serves more than 250,000 customers worldwide.
The restructuring adds Monday.com to a growing group of technology companies that have reduced staffing while directing more investment towards AI products and infrastructure. The company has not provided a detailed breakdown of the teams or locations affected by the cuts.
Featured image credits: Outsourced Staff
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