Monday.com says AI demands a reset, even as hundreds lose their jobs

Monday.com says AI demands a reset, even as hundreds lose their jobs
Monday.com’s decision to cut roughly one-fifth of its workforce captures a broader tension running through tech: companies say artificial intelligence is opening a huge new market, while workers are experiencing that pivot as immediate job loss.

The workplace software company says the layoffs — about 620 to 630 employees — are part of a restructuring meant to reposition the business around its AI Work Platform, not simply a cost-cutting exercise. In a filing and executive memo, Monday.com described the change as support for “a leaner, more focused operating model” tied to an “AI-driven growth strategy.” Co-CEO Eran Zinman argued the company is adapting to a larger industry shift, saying AI is “transforming the role of software” and creating a market the company needs to move quickly to capture.

That is the company’s central case: the structure that worked for traditional project-management software may not be fast enough for an AI-era product built around agents, automation tools, chatbots, and no-code systems. Monday.com has also said it plans to keep hiring in priority areas, reinforcing its claim that the move is a reallocation of resources rather than a blanket retreat.

But the layoffs also fit a pattern that has become increasingly familiar across the tech sector. TechCrunch placed Monday.com among a growing list of companies that have explicitly linked job cuts to AI investment, while noting that more than 122,000 tech roles have already been eliminated this year and that many firms are using AI as the rationale for reshaping their workforces. Business Insider similarly noted that Monday.com is joining a widening group of companies invoking AI while announcing cuts.

The dispute, then, is less about whether AI is changing the business than about what that change really means. Monday.com insists the decision “was not made to reduce costs or replace people with AI.” Critics of this broader industry trend are likely to see a simpler reality: AI may be the strategy, but layoffs are still the instrument.

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