Monday.com cuts 630 jobs in AI reset
Monday.com is restructuring around an AI work platform, showing how established SaaS companies are changing both products and organisations.
The shift from conventional SaaS to agent-driven software is beginning to reshape not only products, but also the companies that build them.
What happened
Monday.com announced a restructuring that will reduce its workforce by about 20%, affecting roughly 630 employees. The company expects restructuring charges of approximately $45 million to $55 million and plans to continue hiring selectively in areas tied to its new strategy.
Management says Monday.com is redesigning its platform around AI-powered work. Its product portfolio now includes tools for building applications through prompts, automating workflows, deploying task-specific agents and using AI assistants across project management, customer service and development work.
The company argues that the layoffs are not a simple attempt to replace staff with AI. Instead, it says the organisation built for its previous phase is too layered and slow for a market where products and customer expectations are changing rapidly. The revised structure is intended to create smaller, more autonomous teams.
Why it matters
Traditional work-management software faces a difficult transition. If agents can plan projects, update records and coordinate tasks directly, customers may question why they need multiple standalone SaaS tools and large amounts of manual configuration.
Monday.com is trying to move before that pressure becomes existential. Its advantage is an installed customer base and access to workplace data; its challenge is converting those assets into AI products customers will pay for rather than features expected to be included.
The bigger picture
AI is becoming a justification for organisational redesign across the software industry. Some companies are using it to cut costs, others to redirect investment, and many are doing both simultaneously.
The outcome will depend on execution. A leaner structure can improve speed, but layoffs can also remove product knowledge and weaken morale. Monday.com must now prove that its AI platform can generate enough adoption and revenue to make the disruption worthwhile.