Monday.com has just become the latest company to lay off its employees in favor of AI.
On Wednesday, July 22, the work management software firm announced that it will lay off about 20% of its workforce, or just over 600 employees.
The news came through a filing with the Securities and Exchange Commission (SEC) in which the Tel Aviv-based company said it had “initiated a restructuring plan.”
In the SEC filing, Monday.com stated: “The Plan reflects the Company’s ongoing transformation of its product, marketing, and go-to market strategy and is intended to support a leaner, more focused operating model as the Company continues to invest in its AI-driven growth strategy.”
Yes, those 20% of employees losing their jobs have been replaced by AI growth. It is perhaps not surprising for a company that announced a platform-wide AI shift a year ago and now self-identifies as an “AI work platform,” but it’s still disheartening.
Monday.com has offices in New York and Denver, in addition to cities in Europe, Australia, South America, and Asia. Fast Company has reached out to Monday.com for more information on where the impacted jobs are located. We will update this post if we hear back.
Monday.com estimates it will face $45 million to $55 million in net charges as a result of the new plan, but expects to maintain or improve on its predicted 19% to 20% year-over-year (YOY) revenue growth for 2026.
Eran Zinman, a cofounder of the company, posted a memo about the layoffs on LinkedIn.
“[Changing] our strategy and product is not enough,” Zinman wrote. “The organization we built for our previous chapter is not the organization that fits the new AI era.”
Shares of Monday.com Ltd (Nasdaq: MNDY) rose marginally following the news, but the stock is still down 74.45% YOY and 49.91% year-to-date (YTD).
Overall, software-as-a-service (SaaS) stocks have faced downward pressure from perceived AI disruptions this year.
Tech companies claim to be trading employees for AI
Monday.com is far from the first company to cite AI in a headcount reduction announcement.
At fintech company Block, CEO Jack Dorsey laid off more than 4,000 people in February to focus on “intelligence tools.” Then there’s Snap CEO Evan Spiegel, who laid off about 1,000 people in April due to “rapid advancements in artificial intelligence.”
More recently, Uber Technologies cut 10% of its customer service jobs, Bloomberg reported Wednesday. An Uber spokesperson told the publication that the company is working “to simplify operations, strengthen in-person collaboration, and continue to embrace AI.”
At the same time, companies like Klarna Group have rehired for roles previously replaced by AI after realizing that maybe a human touch does matter.
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