Monday.com, the Tel Aviv-based work management software company, has joined a growing list of tech firms attributing layoffs to artificial intelligence. This week, the company announced it will cut about 20% of its workforce—over 600 employees—as part of a restructuring plan tied to its AI-driven growth strategy. Main Developments In an SEC filing on Wednesday, Monday.com said the layoffs are part of a restructuring plan focused on its product, marketing, and go-to-market strategy. The company expects $45 million to $55 million in net restructuring charges but still projects up to 20% year-over-year revenue growth for 2026. Co-founder Eran Zinman told employees in a LinkedIn memo that the move was not about cost reduction or replacing people with AI. Instead, he framed it as adapting the organization to a new AI-first vision the company laid out roughly a year ago when it rebranded around a platform-wide AI push. Read also: Warner Bros. Discovery Sues Amazon Over Executive Poaching Claims Background Monday.com is the latest tech company to cite AI as a factor in job cuts, following a pattern seen across the industry. The company, known for its colorful, customizable project-tracking boards, has two offices in the U.S. and has been investing heavily in AI integration over the past year. Why It Matters These layoffs highlight a broader trend: tech companies are increasingly using AI as a rationale for workforce restructuring, even when they deny that AI directly replaces jobs. The move signals a shift toward leaner operations focused on AI-driven growth, which could affect how other firms approach staffing and strategy. What's Next Monday.com will likely implement its restructuring plan over the coming months, with the full impact on employees and operations becoming clearer. Industry observers will watch whether other companies follow suit, citing AI as a driver for similar organizational changes.