Monday.com is cutting 620 jobs, roughly 20% of its workforce, as the company pivots toward an AI-driven platform. The move comes amid growing pressure in the software-as-a-service sector.
The layoff details
The Israeli-based work operating system company announced the reduction, which affects employees across multiple departments. The layoffs are part of a broader restructuring aimed at shifting resources toward artificial intelligence development. Monday.com did not specify which teams would be most impacted but said the changes are designed to position the company for long-term growth.
Why the pivot to AI
Monday.com is refocusing its product strategy around AI capabilities. The company plans to integrate more intelligent automation and data-driven features into its platform, which helps businesses manage projects, workflows, and team collaboration. The pivot reflects a wider industry trend where SaaS companies are racing to embed AI tools to stay competitive and meet customer demand for smarter, more efficient software.
SaaS sector headwinds
The company attributed the layoffs to growing pressures in the SaaS sector. Rising competition, slower growth rates, and the need to invest heavily in AI have forced many software firms to reassess their cost structures. Monday.com joins a list of tech companies that have trimmed staff in recent months as they try to balance innovation with profitability. The company did not provide further details on the financial impact of the cuts.
With the restructuring, Monday.com aims to accelerate its AI roadmap. The company will now focus on building and deploying new AI-powered features for its existing customer base. The layoffs are expected to take effect in the coming weeks.
