Monday.com cuts 630 jobs to focus on AI
CALIFORNIA, UNITED STATES — Monday.com is cutting 630 positions — 20% of its workforce — to restructure around an artificial intelligence (AI) work platform, becoming one of the latest tech companies to trade headcount for AI investment.
According to a report from TechCrunch, the layoffs include roughly 350 roles at the company’s Tel Aviv headquarters and will cost between $45 million and $55 million in restructuring charges.
Monday.com co-founders frame cuts as a strategic pivot
Roy Mann and Eran Zinman, co-founders and co-chief executive officers (CEOs) of Monday.com, said the decision reflected a fundamental shift in how software operates alongside human teams.
“We entered a new era where AI is transforming the role of software, creating the greatest opportunity our industry has ever seen,” they wrote in a letter to staff.
The restructuring — the most sweeping in Monday.com’s 14-year history — covers $45 to $55 million in charges, with roughly 350 of the affected roles based in Tel Aviv. Despite the scale of cuts, the company maintained its 2026 revenue growth guidance of 19 to 20% year-over-year and raised its non-GAAP operating margin forecast from approximately 13% to 15%.
Mann and Zinman called it “the most painful we have made since founding monday.com — yet we are certain it is the right one.”
Monday.com joins AI-driven layoff wave
“The company that comes out of this change will have clearer priorities, fewer layers, faster decisions, and greater ownership,” Mann and Zinman wrote.
Monday.com is among a wave of tech employers that have cited AI investment as the primary driver of workforce reductions, a pattern spanning more than 122,000 industry roles cut sector-wide in 2026 year-to-date.
The company has redesigned its entire product around AI agents, with a no-code application builder, customizable AI agent, workflow automation, and task-performing chatbot at the core of its AI Work Platform.
Monday.com’s restructuring reflects a wider industry calculation: that AI infrastructure investments now take precedence over headcount-based scaling.
For business process outsourcing (BPO) providers, the Monday.com restructuring underscores a pattern reshaping how enterprise software clients approach workforce composition. As clients like Monday.com redesign operations around AI agents, BPO firms that integrate AI-native platforms into their service delivery are better positioned to meet evolving client expectations.
The outsourcing industry’s opportunity lies in demonstrating that human-in-the-loop delivery, enhanced by AI tools rather than replaced by them, offers a resilience no fully automated stack can match.
Related news
- Monday.com reimagines work with AI that executes tasks · 18 Oct 2025
- Invisible work draining best employees: HBR · 28 Jul
- U.S. jobless claims fall to lowest since 1969 · 28 Jul
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
