Humans Out, Bots In: Monday.com Cuts Hundreds of Workers to Fund AI Push

Israeli workplace management provider Monday.com is letting go of hundreds of employees as part of a sweeping restructuring plan to redirect corporate funds toward artificial intelligence initiatives.

The company announced it is slashing its total workforce by 20 percent, cutting roughly 630 staff members. Executive leadership stated the layoffs will build a leaner, more focused business model centered around its expanding AI Work Platform.

Earlier this year, Monday.com shifted its core business focus toward artificial intelligence features. The company redesigned its main product framework after recognizing that business clients want digital agents working directly alongside human staff. Its new AI Work Platform includes a no-code application builder, customizable digital agents, automated workflow tools, and a chatbot capable of generating status reports and updating management dashboards automatically.

Monday.com joins a long list of technology companies that have cut staff to clear payroll room for machine learning development. Data from tracking platform Layoffs.fyi shows that industry layoffs spiked to a multi-year monthly high in May. A record 78 percent of tech companies cutting staff cited the need to shift resources toward automated software as the primary reason for letting workers go.

Industry records show that tech firms have eliminated over 122,000 jobs so far in 2026. Companies are cutting traditional administrative, support, and sales roles to free up capital for high-end server hardware, cloud computing capacity, and specialized software talent.

Monday.com estimates the current layoffs and restructuring efforts will cost the company between $45 million and $55 million in severance packages, legal expenses, and operational fees. Company leaders believe trimming headcount now will give them the financial agility needed to compete with rival enterprise tools as workplace automation accelerates.

While these workforce reductions shock affected staff, executives view the cuts as a necessary shift to stay competitive. Company leaders are betting that corporate clients will pay higher subscription rates for intelligent software agents that automate daily tasks than for traditional project management tools.

As automation becomes deeply integrated into daily operations, companies everywhere face a tough reality. Maintaining a bloated workforce while trying to keep up with rapid software development simply does not work financially. By making these cuts now, Monday.com aims to stay ahead of the competition and lock in enterprise customers looking for smart, automated workflows.