Monday.com (NASDAQ:MNDY) is cutting approximately 20% of its global workforce as the Israeli workplace software company restructures its operations around a shift toward AI-enabled collaboration between employees and autonomous agents.
The company will eliminate around 620 roles worldwide, according to a letter sent to employees by co-founders Roy Mann and Eran Zinman, who described the decision as the “most painful” since the company’s founding.
The company said some existing roles will change while new positions will be created as it focuses on expanding AI-related products and increasing customer support. The restructuring will include changes to sales and customer engagement operations, including deeper implementation support and greater on-site customer presence.
Monday.com said it expects to incur between $45 million and $55 million in net restructuring charges, primarily related to severance costs and office space reductions. The company plans to reinvest savings from the restructuring into AI engineering and product development.
Monday.com said the layoffs are not intended as a cost-cutting initiative or a direct replacement of employees with artificial intelligence, but instead reflect a broader organizational shift as the software industry adapts to changing customer expectations and AI-driven workflows.
“We entered a new era where AI is transforming the role of software, creating the greatest opportunity our industry has ever seen,” Mann and Zinman wrote in the letter.
“We have a new market to capture. Without a fundamental change in how we operate, we will not be able to compete and win that market.”
The restructuring comes as Monday.com moves from its traditional role as a platform for managing work toward what it describes as an AI-powered workspace where employees and AI agents work together to complete tasks.
“Over the past nine months, we have shifted our core vision moving from managing work to doing the work for our customers, with people and AI agents working together in one workspace,” the founders wrote.
The company said the transition requires changes beyond product development, including a new organizational structure designed around smaller, more autonomous teams and fewer management layers.
“It became clear that changing our strategy and product is not enough,” the founders said in the letter. “The organization we built for our previous chapter is not the organization that fits the new AI era.”
Around 350 of the affected positions are expected to be at Monday.com’s headquarters in Tel Aviv, with the remaining reductions spread across its global offices.
Alongside the restructuring announcement, Monday.com raised its full-year 2026 non-GAAP operating margin outlook to 15% from a previous forecast of 13%, while maintaining its revenue growth target of 19% to 20%.
Shares of Monday.com were little changed at $73 on Wednesday.