monday.com cuts 20% of staff as it shifts to AI platform

monday.com cut 20% of its workforce, or about 630 employees, as the New York and Tel Aviv company said it was moving to a leaner, more focused operating model built around an AI Work Platform. The restructuring came as monday.com described the shift as “the biggest change in the company's history” and said it was rebuilding the product “from the ground up around people and agents working together to get work done.”

The layoff underscores the tension now facing profitable software firms: AI is being sold as a growth engine even as it is used to justify smaller headcounts. monday.com has said more than 250,000 customers worldwide use its platform, giving the company a large installed base to push toward new AI tools and agent-driven workflows.

The company’s recent results show why the cuts stand out. In the second quarter of 2025, monday.com reported revenue of $299.0 million, up 27% from a year earlier, and said monday CRM had reached $100 million in annual recurring revenue. In the third quarter, revenue rose to $316.9 million, up 26% year over year, while new products accounted for more than 10% of total ARR and more than 60,000 apps were built on monday vibe in about three months.

Those gains followed record operating performance. monday.com reported record GAAP and non-GAAP operating income and record adjusted free cash flow in the first quarter of 2025, then record non-GAAP operating income for fiscal 2024. The company’s restructuring therefore lands from a position of growth, not distress, making the layoffs a sharper test of whether AI is reshaping the business or simply trimming costs under a new label.

Multiple reports put the job cuts at about 620 to 630 employees worldwide. The move also fits a broader wave of AI-linked layoffs across technology and white-collar work, after Reuters reported on July 6 that companies were cutting jobs as investments shifted toward AI. For monday.com, the next question is whether the pivot to an AI Work Platform produces a genuinely new product category, or whether the company is using AI language to rationalize a smaller, leaner workforce while keeping revenue momentum intact.