Israeli Software Company Monday Cut 620 Jobs as AI Transformation Reshapes Organization

Monday.com, one of Israel's leading publicly traded software companies, announced plans to lay off 620 employees, representing approximately 20% of its global workforce, as part of a broad organizational restructuring designed to accelerate its transition into an AI-first software company.

The move comes as the company adapts its operations to a new product strategy centered on artificial intelligence, while responding to rapidly changing customer expectations and growing competition in the enterprise software market.

AI at the Center of Corporate Strategy

In announcing the restructuring, Monday.com said it has redesigned its platform around advanced AI capabilities and believes artificial intelligence is fundamentally transforming the enterprise software industry.

"The emergence of AI is reshaping customer expectations for software and creating an entirely new market opportunity," the company said.

Management emphasized that the restructuring is intended to position Monday.com for long-term growth rather than serve as a short-term cost-cutting exercise.

Leaner Organization, Faster Decision-Making

As part of the restructuring, the company will flatten its organizational hierarchy by reducing management layers and creating smaller, more autonomous teams.

According to Monday.com, the new structure is designed to empower employees, accelerate product development, improve execution, and give teams greater ownership over projects.

The company stressed that the layoffs are not primarily the result of replacing employees with artificial intelligence, but rather part of a broader reallocation of resources toward AI innovation, product development, and future expansion.

New Go-to-Market Strategy

Monday.com also announced changes to its go-to-market strategy, with an increased focus on helping existing customers transition into the AI era while attracting new customers building AI-native workflows from the outset.

The company believes enterprise demand is shifting toward software platforms capable of integrating AI agents directly into day-to-day business operations.

Stock Performance Reflects Industry Concerns

The restructuring follows a difficult period for Monday.com's share price.

The company's stock has lost approximately 50% of its value since the beginning of the year and is down nearly 75% over the past 12 months, reflecting broader investor concerns about how generative AI is reshaping the software-as-a-service (SaaS) industry.

Investors have increasingly questioned whether traditional software vendors can maintain their competitive advantages as AI-powered tools automate functions that previously required dedicated enterprise applications.

Continued Investment in Artificial Intelligence

Despite the workforce reduction, Monday.com continues to increase its investment in AI.

Last month, the company launched Monday Ventures, a new investment arm focused on artificial intelligence startups.

The initiative includes a commitment of up to $200 million, with an initial investment allocation of $50 million, targeting companies developing AI agents, workflow automation technologies, enterprise data solutions, and cybersecurity innovations.

Evolution of the Business

Founded in 2012 by Roy Mann and Eran Zinman, Monday.com went public on the Nasdaq in 2021 at a valuation of $6.8 billion.

Originally focused on work management and collaboration software, the company has expanded into customer relationship management (CRM), customer service, software development management, and enterprise workflow automation.

Today, Monday.com serves more than 100,000 organizations worldwide, including major global brands such as Philips, McDonald's, and Uber.

Industry Undergoing Structural Change

Monday.com's restructuring reflects a broader transformation taking place across the global SaaS industry.

As generative AI rapidly changes how businesses develop software and manage workflows, technology companies are redesigning products, restructuring organizations, and reallocating capital toward AI-driven innovation.

Industry analysts expect similar strategic adjustments across the software sector as companies compete to establish leadership in the emerging AI-powered enterprise software market.