Monday.com Cuts 620 Jobs in AI Pivot, Joining a Wave of Tech Layoffs Blamed on Automation

Monday.com has become the latest major tech employer to publicly tie a large workforce reduction to artificial intelligence, cutting about 20% of its global staff—over 600 employees—in a restructuring it says is designed to accelerate its evolution into an “AI Work Platform.” The move, announced in late July 2026, places the Israeli work-management software company alongside more than 20 other large tech firms that have explicitly blamed AI for layoffs this year, according to TechCrunch’s running tally. With more than 122,000 tech jobs eliminated in 2026 so far, a record 78% of companies have cited a need to “refocus their efforts around AI” as a reason for the cuts, per data from Layoffs.fyi cited by TechCrunch.

Monday.com disclosed the layoffs in a Form 6‑K filing with the U.S. Securities and Exchange Commission, stating that the reduction aligns the company with its “strategic focus on the AI Work Platform.” Multiple outlets—including Fast Company, Business Insider, CIO, and Israeli tech publication CTech—converge on the figure of roughly 620 jobs cut, or about 20% of the global workforce. (A conflicting report from SaaSRise claiming ~300 employees appears to be an error, as mainstream and local Israeli sources all point to the higher number.)

In a letter to employees, co‑founders Roy Mann and Eran Zinman called the decision “the most painful” since the company’s founding, but framed it as necessary for the “AI era.” Zinman later elaborated in a company‑wide Q&A, where leadership explicitly rejected the notion that AI was replacing people. “No. While we are seeing significant value from AI internally, this decision was not made to reduce costs or replace people with AI,” the company told staff. “We see internal AI adoption as an accelerator of our growth.”

Yet the public and regulatory messaging tells a different story. Monday.com has tied the layoffs directly to an “AI‑driven growth strategy” and a restructuring plan that refocuses investments around AI projects. TechCrunch reports that the cuts are part of a broader shift: the company is “restructuring around its transition from a platform for managing work to one designed to allow employees and AI agents to perform work together.” The implication is clear: while the company insists AI isn’t taking jobs today, its entire strategy is being rewritten to put AI at the center—and headcount in non‑AI areas is being trimmed as a result.

Monday.com is not an outlier—it’s the latest data point in a startling trend. TechCrunch’s “running list” of major tech layoffs in 2026 where employers cited AI includes household names like Snap and Block (Jack Dorsey’s fintech company). The common thread: management explicitly describes layoffs as part of an “AI‑first,” “AI‑native,” or “AI‑driven” strategy, or justifies cuts by reallocating resources to AI investments in large language models, AI agent platforms, or AI infrastructure.

What makes Monday.com’s case particularly striking is the cognitive dissonance. The company’s SEC filing and public statements lean heavily on AI as the reason for the restructuring, while the internal Q&A tries to reassure employees that AI isn’t the cause of job losses. This dual messaging reflects a broader tension in the tech industry: companies want to signal to investors and markets that they are aggressively pursuing AI (which boosts stock prices and narrative), but they also need to manage morale and avoid the PR backlash of being seen as “replacing humans with bots.”

For founders and managers, the Monday.com playbook is worth studying. The company is not flailing—it’s executing a deliberate pivot from a “work management” platform to a “work orchestration” platform where AI agents and humans collaborate. That pivot requires capital, headcount rebalancing, and a clear public narrative. The layoffs, while painful, free up resources to hire AI engineers, buy AI infrastructure, and build the next generation of AI‑powered features.

But the lesson for employees is sobering. Even if your company tells you that AI isn’t replacing you, the strategic realignment may still eliminate your role if it’s not in a “AI‑adjacent” function. Monday.com’s cuts appear concentrated in support, operations, and mid‑layer product roles—areas that are increasingly seen as automatable or redundant when AI tools can handle customer queries, triage tickets, or generate basic code. The message: if your job is in a non‑core, non‑AI role, you are at risk, regardless of the company’s internal reassurances.

For the broader tech industry, the Monday.com layoffs are a signal that the AI restructuring wave is far from over. With 122,000 jobs already slashed in 2026 and a record percentage citing AI, the trend is accelerating. Companies that have already made cuts may double down, and smaller firms may follow the lead of the giants. The question is not whether AI will drive more layoffs, but how many more companies will use the “AI pivot” as their justification.

Monday.com’s next quarterly earnings call will be crucial. Investors will want to see whether the AI Work Platform pivot is translating into revenue growth or market share gains—and whether the 20% headcount reduction actually improves margins. Meanwhile, keep an eye on TechCrunch’s running list, which is likely to grow. If the 78% figure continues to climb, 2026 may be remembered as the year AI became the dominant reason for tech layoffs, not just a side bet. For employees, the message is clear: even if you aren’t replaced by AI today, the company may restructure itself around AI tomorrow—and your job might not survive the transition.