Israeli tech giant monday.com announced Wednesday it is laying off roughly 20 percent of its global workforce, according to Kan News, in one of the largest rounds of cuts to hit Israel's tech sector this year. The company said it is undergoing a change to its organizational structure that will affect approximately 620 employees worldwide, with 350 of those positions in Israel, per Kan's report.
According to Kan, the company said the move is tied to the most significant product overhaul in its history, a redesign of its platform around a vision of AI-based work. In comments carried by Kan, the company said the arrival of AI has fundamentally changed customer expectations of software and opened a new market representing a major opportunity for continued growth, adding that in order to compete and win in this new landscape, monday.com is now aligning its organizational structure with its product vision, with an emphasis on speed and performance.
Not A Cost-Cutting Move, Company Insists
Per Kan's account, monday.com pushed back on the idea that the layoffs are simply a short-term cost-cutting measure or a byproduct of AI-driven efficiency gains, saying instead that the goal is to reconcentrate resources within the company and reinvest them in its people, product development, its AI engines, and future growth. Co-CEOs Roy Mann and Eran Zinman sent a letter to employees Thursday explaining the reasoning behind the decision, according to Kan, with the company saying it is committed to supporting affected employees through the transition with a comprehensive package that includes financial assistance, accelerated vesting of stock grants, continued medical coverage, and emotional support.
Part Of A Wider Pattern
The cuts land amid a broader wave of AI-driven restructuring sweeping the global tech industry through 2026, with companies including Meta, Oracle, Cloudflare, PayPal, and Intuit all announcing significant workforce reductions this year while simultaneously citing continued or accelerating AI investment.
Monday.com's own stock has been under sustained pressure over the past year, and co-CEO Eran Zinman has spoken publicly in recent months about the company's need to rebuild around an AI-first product strategy even as investors push for faster revenue growth rather than headcount reductions alone.
Kan noted that today's announcement follows a separate wave of layoffs earlier this year at Amdocs, the Israeli software giant, which also cut thousands of positions worldwide including hundreds in Israel, part of a pattern of contraction that has coincided with a broader rise in the number of Israelis registering as jobseekers.
