Monday.com cuts 20% of its workforce as it reshapes its structure for an AI‑driven future, according to a recent SEC filing and statements from co‑CEO Eran Zinman.
Layoffs framed as a strategic reset
In a LinkedIn post on Monday, Zinman announced a “very difficult decision” to reduce the company’s global staff by roughly 620 employees, about one‑fifth of its workforce. He emphasized that the move is not aimed at boosting profit margins or substituting workers with artificial intelligence. Instead, the reduction is part of a broader effort to create a “leaner, more focused operating model” as AI becomes a core component of daily workflows.
Greyhound Research analyst Sanchit Vir Gogia described the filing as “a deliberate reset, disclosed with its price attached,” noting that the software industry has quietly redefined productivity. The SEC filing cited an “ongoing transformation of its product, marketing, and go‑to‑market strategy” as the rationale behind the restructuring.
Zinman added that the company has shifted from “managing AI” to “doing the work with AI,” aiming to build environments where people and AI agents collaborate within a single workspace. He warned that the organization built for a previous chapter no longer fits the new AI era, and that the firm must “execute more decisively” to meet evolving market demands.
New organizational design and go‑to‑market focus
The restructuring will produce a flatter hierarchy with fewer management layers and smaller, more autonomous teams. Monday.com also plans to overhaul its go‑to‑market approach, offering deeper implementation support as customers adopt AI tools. According to the filing, the company intends to increase its on‑site presence, create new roles, and adapt many existing ones, while continuing to hire in “key strategic areas” through 2026.
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In the revised model, workers are expected to achieve more “not harder,” a sentiment Zinman linked to past projects that dragged on for months due to “multiple meetings and endless friction.” The new structure will give teams ownership of decisions, allowing them to move faster.
While the company declined further comment on the layoffs, analysts note that Monday.com still expects 19% to 20% year‑over‑year growth in 2026. Greyhound’s Gogia argued that such a restructure is not a survival tactic but a choice to become something different.
From a broader perspective, the shift reflects a growing trend among enterprise software firms to align their internal structures with AI capabilities. Companies that can quickly adapt their teams and processes may gain a competitive edge, while those that lag could face slower adoption rates and reduced customer satisfaction.
Monday.com’s advantage lies in its “structured substrate,” which includes boards, permissions, and typed workflows that give AI agents a solid foundation to act upon. The platform highlights native agents configurable by any team member, as well as connectors to Claude, Microsoft Copilot, and ChatGPT. Gogia pointed out that the current focus in the enterprise space is shifting from merely having an agent to owning a governed runtime where the agent can operate safely.
Parts of the agent ecosystem remain in staged release, with the agent builder still marked as beta as recently as March. The company also introduced a hybrid pricing model in May, charging for seats and mandatory AI credits. Its AI‑powered no‑code builder, Monday Vibe, reached $1 million in annual recurring revenue within two and a half months, but subsequent usage figures have not been disclosed.
Competitors such as Asana, Atlassian, Microsoft, and ServiceNow are also reorganizing around AI agents, often bundling them into broader product suites. Gogia observed that these rivals have strong “gravity” in the large‑account segment where Monday.com seeks growth, emphasizing control‑plane depth and administrative reach as decisive factors.
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For customers, the near‑term focus should shift to operational risk rather than headline risk, according to Moor Insights & Strategy analyst Melody Brue. She advises monitoring continuity of service, roadmap consistency, and the robustness of enterprise support. Productivity should be measured by smoother, faster outcomes rather than sheer activity levels.
Gogia added that strain typically appears first in customer service, and Monday.com’s attention is being redirected accordingly. The company’s annual report indicates a concentration on its largest accounts, while support for medium‑sized clients moves to an AI‑first, human‑supported model.
Buyers are urged to track named‑account continuity and escalation times during the first month of transition, followed by credit governance and admin control maturity by the first quarter. By the six‑month mark, they should assess whether promised implementation depth translates into tangible results or merely increased billable engagement.
Contracts should explicitly enumerate support tiers, include “side exits,” and fix overage pricing in advance. Finance teams are recommended to require monthly consumption reporting by capability and to treat integration, partner dependency, and change management as primary costs of the AI era, rather than afterthoughts.
Monitor the transition closely.
