monday.com laid off 620 people to fund what it calls the biggest rebuild in its history
Co-CEOs Roy Mann and Eran Zinman say the 20 percent cut is not cost-cutting: it funds an AI Work Platform where "people and AI agents work together in one workspace." Restructuring charges are expected at $45 million to $55 million.
monday.com cut 620 jobs, 20 percent of staff, calling it a product bet on AI agents, not cost-cutting.
monday.com laid off about 620 people on July 22, 2026, roughly 20 percent of its global workforce. Co-CEOs Roy Mann and Eran Zinman told staff directly that this was not a cost-cutting move. In their letter, they described it as funding "the largest product transformation in monday.com's history": rebuilding the Work OS platform around AI agents working alongside people in the same workspace.
The numbers behind the cut
The Tel Aviv-based company expects restructuring charges of $45 million to $55 million tied to the layoffs, a figure it disclosed in the same announcement rather than leaving it for a later filing. Mann and Zinman said departing employees receive severance, accelerated stock vesting, continued medical coverage, and job placement help. In the same letter, the two co-founders called it "the most painful decision" the company has made since it was founded, language that is unusually direct for a layoff announcement, which more often arrives from HR rather than from the people who built the company.
What the freed budget is actually funding
Mann and Zinman framed the cuts as reallocation, not retrenchment. The freed budget moves toward what they call an AI Work Platform, where, in their words, "people and AI agents work together in one workspace." That is a specific product direction, not a slogan. It means AI agents become actors inside monday.com's boards, automations, and workflows alongside the humans running them, rather than a chat panel added next to the existing product.
A restructuring with the receipts attached
What separates this from a routine layoff announcement is that monday.com put a number on both sides of the trade in the same breath: 620 jobs and $45 million to $55 million in charges on one side, a named product direction on the other. Most companies keep those two stories apart, a layoff memo in one quarter, a product roadmap post months later. Putting them in the same letter is what makes the reallocation claim checkable instead of just asserted.
Why a build studio cares
The specific number matters more than the framing. A $45 million to $55 million restructuring charge tied to a named product direction, agents and humans sharing a workspace instead of a chatbot bolted onto the side, is a bet a competitor or an existing customer can hold the company to over the next few release cycles. We build on tools like this ourselves, and how a vendor spends a layoff tells us more about its actual roadmap than its press release does.
Next step: read TechCrunch's report on the layoffs and Globes' coverage from Israel. If you're rethinking how AI agents fit into a product your team already ships, write to us at hello@gattyworks.com.