Israeli work operating systems company monday.com (Nasdaq: MNDY) today announced it is laying off 20% of its workforce worldwide, which will amount to about 620 employees.
The company said, “The move is based on the largest product change in the company’s history in recent months – redesigning the platform around the vision of an AI-based work platform.”
monday.com has recently suffered a sharp decline in its share price, falling 50% since the beginning of the year and losing over 80% from its peak.
The company said: “In order to achieve the required speed and focus, the company is flattening its organizational structure. This move includes reducing management layers, with the aim of creating smaller, more autonomous teams, which will enable faster decision-making and swifter and more efficient execution. Creating a simpler organizational structure is designed to empower teams, allow them to act faster, and restore clear and broader ‘ownership’ of projects.”
monday.com explains that this change is not a short-term move to cut costs or the product of AI-based efficiency. “The goal is to refocus resources within the company and invest them in the company’s people, product development, AI engines, and future growth of the company.”
The move is estimated to affect about 350 employees in Israel – half of monday’s employees at the development center on Tel Aviv’s Yitzhak Sadeh Street.
“A painful but correct decision”
A letter sent to employees by co-CEOS Roy Mann and Eran Zinman said, “Over the past nine months, we have changed the company’s core vision, from managing work to doing the work for our customers, with people and AI agents working together in one workspace.”
“This required us to change our product, our strategy, and the way we serve our customers. But it turned out that changing our strategy and product was not enough. The organization we built previously is not the organization that is suitable for the new AI era.” “Today we are announcing the very difficult decision to reduce our global workforce by 20%, affecting about 630 employees. This is the most painful decision we have made since the founding of monday – and yet we are confident that it is the correct one. We have done it. We are the owners. And we take full responsibility for it. “The people leaving are talented colleagues and friends. They have helped build this company, support our customers and create a culture that we are incredibly proud of. We are deeply grateful to them and know that nothing we can say will lessen the impact this will have on them and their families. We are not making this change to protect what we have. We are doing it to go for all that monday can be.”
Published by Globes, Israel business news – en.globes.co.il – on July 22, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
