monday.com is making a significant structural change. The company announced today that it will reduce its global workforce by approximately 20%, affecting roughly 620 employees. Co-founder and co-CEO Eran Zinman disclosed the decision in a LinkedIn post, describing it as a “very difficult decision” but a necessary step to align the organization with the demands of the current technology landscape.
According to a SEC filing submitted this week, the restructuring reflects an “ongoing transformation of its product, marketing, and go-to-market strategy.” The move is designed to support a “leaner, more focused operating model” as monday.com continues to invest heavily in its AI-driven approach. Zinman emphasized that the reduction is not intended to replace humans with AI or to boost margins, but rather to hone the company’s focus as AI becomes integral to daily workflows.
Why the cuts are happening
Zinman stated that the company has shifted to “doing the work with AI and not just managing it.” The new structure aims to build environments where “people and AI agents work together in one workspace.” He noted that the organization built for the previous chapter does not fit the new AI era, and monday.com needs to “execute more decisively” to respond to market changes.
The restructuring will result in a “flatter organization” with fewer management layers and smaller, more autonomous teams. monday.com also has a new go-to-market model in place. Customers now expect “deeper implementation support” as they deploy AI, and the company will work more closely with customers, increase its on-site presence, create new roles, and “adapt many existing ones.” In its SEC filing, the company said it expects to continue hiring in “key strategic areas” throughout 2026.

Zinman pointed to past examples where work could have been done in a few days but instead took many months due to “multiple meetings and endless friction.” He added that the new org changes ownership to allow people to make decisions and move fast. A spokesperson for monday.com declined to comment further on the staff reductions.
The AI strategy and product changes
While the company is trimming its workforce, it is simultaneously evolving its products and strategy. monday.com highlights its natively built agents that can be configured by any team member, as well as connectors with Claude, Microsoft Copilot, and ChatGPT. The company also has dedicated routes for external agents to authenticate and operate.
Sanchit Vir Gogia, chief analyst at Greyhound Research, noted that monday.com’s advantage lies in its “structured substrate.” He explained that its boards, permissions, and typed workflows give agents something firmer to act on than just documents and chat history. “For some time, the sharper enterprise question has been shifting from who has an agent to who owns the governed runtime in which an agent can safely act,” Gogia said. “Structured work is a serious claim on that runtime.”
Source: Computerworld
Over to you: Will monday.com’s pivot to AI agents win over enterprise buyers, or will the shift to a credit-based model drive customers to competitors like Asana and Microsoft?



