Israeli workplace software company Monday.com is cutting hundreds of jobs as part of a restructuring plan designed to shift its investments toward artificial intelligence initiatives. The firm announced it is reducing its workforce by 20%, equating to roughly 630 employees, in order to "support a leaner, more focused operating model" as it doubles down on its AI Work Platform.

Earlier this year, Monday.com made a decisive pivot toward positioning its AI platform as a central offering, completely reimagining its product lineup around the belief that enterprise clients increasingly want AI agents to collaborate alongside their human staff. The AI Work Platform now includes a no-code app builder, a customizable AI agent, a workflow automation tool, and a chatbot capable of tasks such as generating reports and updating dashboards.

The company joins a growing list of major tech firms that have laid off hundreds of thousands of workers as they redirect resources toward AI development. Tech layoffs in May reached a monthly peak not seen in years, and according to Layoffs.fyi, a record 78% of companies have cited a need to refocus efforts around AI as the reason for letting employees go this year. Data from Layoffs.fyi also shows that more than 122,000 tech roles have been eliminated so far in 2026.

Monday.com expects to incur between $45 million and $55 million in charges as a result of the restructuring.