Monday.com is cutting 630 employees, representing 20% of its workforce, as the Israeli workplace software maker restructures to focus on artificial intelligence projects.

The company said it is reducing headcount to "support a leaner, more focused operating model" as it concentrates on its AI Work Platform. Monday.com expects to incur $45 million to $55 million in charges from the restructuring.

The Tel Aviv-based company pivoted hard toward AI earlier this year, redesigning its entire product around the belief that enterprise customers increasingly want AI agents working alongside employees. The AI Work Platform includes a no-code app builder, customizable AI agent, workflow automation tool, and chatbot for tasks like generating reports and updating dashboards.

Tech industry's AI-driven layoffs accelerate

Monday.com joins a growing list of large tech firms that have eliminated hundreds of thousands of jobs while investing more heavily in AI capabilities. Tech layoffs hit a monthly high in May unseen in years, according to outplacement firm Challenger, Gray & Christmas.

A record 78% of companies cited the need to refocus efforts around AI as a reason for workforce reductions this year, according to Layoffs.fyi data. More than 122,000 tech roles have been cut so far in 2026, the tracking site shows.

The layoffs come as Monday.com, which went public in 2021, faces pressure to demonstrate returns on its AI investments. The company's stock has fluctuated as investors weigh the costs of AI transformation against potential revenue growth from new AI-powered features.

Monday.com's workforce reduction follows similar moves by other enterprise software companies betting their futures on AI capabilities. The company has not disclosed which specific roles or departments will be most affected by the cuts.

The restructuring is expected to be completed by the end of the third quarter, with the company aiming to emerge as a more focused AI-first workplace platform provider.