Monday.com plans to cut 20% of its workforce, shifting to an AI-focused platform, joining other enterprise software firms citing AI in layoffs. Stock down 75% in past year.
Monday.com plans to cut 20% of its workforce, the company disclosed in a Form 6-K filing. The layoffs are meant to align the company with its “strategic focus on the AI Work Platform,” the filing said.
The enterprise software provider joins a list of companies – Snap and Block among them – that have cited AI while announcing job cuts. Monday.com said it was pursuing an “AI-driven growth strategy.”
“We entered a new era where AI is transforming the role of software, creating the greatest opportunity our industry has ever seen,” Monday.com cofounder and co-CEO Eran Zinman wrote in a LinkedIn note. “We have a new market to capture. Without a fundamental change in how we operate, we will not be able to compete and win that market.”
Zinman said the changes would make Monday.com flatter, with more autonomous teams. He added that the decision “was not made to reduce costs or replace people with AI.” The company also said it plans to continue hiring in areas of focus.
The exact number of affected employees is not yet clear. Monday.com’s 2025 annual report listed 3,155 employees. The company did not respond to a request for comment.
The layoffs come amid broader concerns in the enterprise software sector that AI tools could reduce demand for traditional project management platforms, a trend some analysts call a “SaaSpocalypse.” Investors worry that generative AI and so-called vibe coding could weaken companies’ reliance on packaged software.
Monday.com’s stock rose in early trading before giving back gains. The stock has slumped roughly 75% over the past year, reflecting broader stock market analysis concerns about enterprise software valuations.
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