Monday.com is eliminating roughly 630 positions, representing a 20% workforce reduction, as the Israeli workplace software company redirects resources toward artificial intelligence initiatives. The restructuring marks a significant strategic shift for the firm, which has redesigned its entire product suite around AI capabilities. Main Developments The company expects to incur between $45 million and $55 million in charges tied to the layoffs. Monday.com described the cuts as part of a leaner operating model that will prioritize its AI Work Platform over other investments. That platform currently includes a no-code app builder, a customizable AI agent, a workflow automation tool, and a chatbot capable of generating reports and updating dashboards. The company earlier this year pivoted hard toward making AI a core offering, betting that enterprise customers increasingly want AI agents working alongside human employees. Read also: 3 Key Ways Android 17 Eases iPhone-to-Android Switching Background Monday.com joins a long list of major tech firms that have shed hundreds of thousands of jobs to fund deeper AI investments. Industry-wide tech layoffs in May hit a monthly high unseen in years, according to Layoffs.fyi, which tracks workforce reductions. A record 78% of companies that have cut staff this year cited a need to refocus efforts around AI as a reason for the reductions. More than 122,000 tech roles have been eliminated so far in 2026, Layoffs.fyi data shows. Why It Matters The cuts underscore a broader industry trend: companies are aggressively reallocating human capital toward AI development, even at the expense of established teams and products. For Monday.com’s customers, the restructuring signals that AI features will become increasingly central to the platform’s value proposition. For employees in the tech sector, the layoffs add to mounting uncertainty. The wave of AI-driven restructuring shows no signs of slowing, as firms across the industry prioritize machine learning capabilities over traditional software development roles. What's Next Monday.com will absorb the restructuring charges in coming quarters as it transitions to its AI-focused model. The company has not specified a timeline for completing the layoffs or for rolling out additional AI features beyond those already in its Work Platform. Industry observers will watch whether the AI pivot translates into revenue growth or market share gains, and whether other software firms follow with similar workforce reductions.