Monday.com is making a sharp bet on artificial intelligence — and asking hundreds of employees to pay the price first. The company says the cuts are about reshaping itself for a new market, even as the move lands in the middle of a broader wave of AI-linked layoffs across tech.

The work-management software company said it will cut about 20% of its workforce, affecting roughly 620 to 630 employees, as part of a restructuring tied to its AI strategy.¹ In Monday.com’s telling, this is less a cost-cutting exercise than an organizational reset. Co-CEO Eran Zinman told employees the company has moved from “managing work to doing the work” with people and AI agents sharing one workspace, and argued that “without a fundamental change in how we operate, we will not be able to compete and win that market.”²

That is the company’s core defense: the layoffs “was not made to reduce costs or replace people with AI,” Zinman wrote, but to build a flatter structure with more autonomous teams and keep investing in talent, products, and AI.³ TechCrunch similarly described the move as an effort to support “a leaner, more focused operating model” around Monday.com’s AI Work Platform, which includes an AI agent, automation tools, a chatbot, and no-code software features.⁴

But the skeptical view is easy to see. Monday.com has become “the latest tech company to blame AI for layoffs,” joining a growing list of firms that are pairing job cuts with AI spending plans.⁵ Critics of that pattern argue that even when companies deny AI is directly replacing workers, the practical effect is similar: jobs disappear while investment shifts toward AI-driven products and new technical priorities.

What makes Monday.com’s case notable is that both interpretations can be true at once. The company may genuinely be reorganizing for growth, while workers and outside observers see another example of AI changing corporate priorities faster than it creates security for employees.