Monday.com to Cut 20% of Workforce in AI Platform Pivot

Enterprise software company announces major workforce reduction

Monday.com will eliminate approximately 20% of its workforce as part of a strategic realignment around artificial intelligence, the company disclosed in a Form 6-K regulatory filing. The project management software provider said the cuts will help focus resources on its "AI Work Platform."

The company framed the layoffs as part of an "AI-driven growth strategy," positioning the reduction as a forward-looking move rather than a cost-cutting measure. Monday.com indicated it would continue hiring in areas aligned with its AI priorities even as it reduces overall headcount.

Based on the company's 2025 annual report showing 3,155 employees, the cuts could affect more than 600 workers, though the exact number remains unclear. Monday.com did not immediately respond to requests for comment, according to Business Insider, which first reported the layoffs.

Why it matters

Monday.com's announcement reflects a broader trend of technology companies invoking AI as justification for workforce reductions. Companies including Snap and Block have similarly cited AI transformation while announcing layoffs. The pattern raises questions about whether AI is genuinely changing business models or simply providing convenient cover for cost-cutting amid market pressure—Monday.com's stock has fallen roughly 75% over the past year.

The cuts also highlight growing anxiety in the enterprise software sector about AI's potential to disrupt traditional business models. Industry observers have coined the term "SaaSpocalypse" to describe fears that AI tools and emerging "vibe coding" capabilities could reduce enterprises' dependence on conventional project management and collaboration software—the core of Monday.com's business.

Market reaction and sector concerns

Monday.com's stock initially rose following the announcement before retreating, suggesting investors view the restructuring with cautious optimism despite the company's significant stock decline over the past year.

The layoffs underscore mounting pressure on software-as-a-service companies to demonstrate how they'll remain relevant as AI capabilities advance. For Monday.com, the challenge is repositioning from a traditional project management platform to an AI-powered work solution while managing the transition's human cost.

The company's decision to maintain selective hiring even while cutting overall headcount suggests a belief that AI expertise and platform development require different skill sets than its current workforce provides. This pattern—simultaneous cuts and hiring—has become common among tech companies navigating the shift toward AI-centric products.

Details of the layoffs were first reported by Business Insider.