monday.com Cuts 620 Jobs to Rebuild Around Autonomous AI Agents and Smaller Teams

Workplace software company monday.com is eliminating approximately 620 roles, around 20% of its global workforce, as part of a strategic restructuring aimed at repositioning the platform around AI-driven collaboration between employees and autonomous agents.

Co-founders Roy Mann and Eran Zinman described the decision in a letter to employees as the "most painful" since the company's founding, while framing the move as essential to competing in a rapidly shifting market.

Key Takeaways

• 620 roles eliminated (about 20% of global headcount), with around 350 in Tel Aviv headquarters
• Restructuring costs estimated at $45 to $55 million, primarily severance and office reductions; savings reinvested in AI engineering
• Company raised its 2026 non-GAAP operating margin outlook to 15% from 13%, maintaining 19 to 20% revenue growth target
• Shift from a work management platform to an "AI-powered workspace" where employees and AI agents work side by side

monday.com said the layoffs are not a direct replacement of employees with AI, but reflect a need for a new organizational structure with smaller, more autonomous teams and fewer management layers.

"We entered a new era where AI is transforming the role of software, creating the greatest opportunity our industry has ever seen," the founders wrote. "Without a fundamental change in how we operate, we will not be able to compete and win that market."

Read the full article on Yahoo Finance