Israeli software provider Monday.com is letting go of hundreds of workers as part of a reorganization effort aimed at concentrating its investments on AI initiatives.

The firm announced a 20% reduction in its workforce, which translates to approximately 630 employees, to “facilitate a more streamlined and focused operational structure” as it channels resources into its AI Work Platform.

Earlier this year, Monday.com made a significant shift towards positioning its AI platform as a central feature, restructuring its entire product based on the notion that its enterprise clients increasingly seek AI agents to collaborate with their teams. The AI Work Platform currently includes a no-code application builder, a customizable AI assistant, a workflow automation solution, and a chatbot capable of performing tasks such as generating reports and updating dashboards.

The company is following a trend among several major tech organizations that have let go of hundreds of thousands of employees in pursuit of greater investments in AI. Tech layoffs in May reached a level not seen in years, and a record 78% of companies have cited the need to realign their efforts towards AI as a justification for workforce reductions this year, according to Layoffs.fyi.

According to data from Layoffs.fyi, over 122,000 tech positions have been eliminated thus far in 2026.

Monday.com anticipates incurring charges between $45 million and $55 million as a result of the restructuring.