Layoffs at Monday.com: Israeli Software Firm Cuts 620 Jobs in AI-era Restructuring

The Israeli work management software company says restructuring is aimed at adapting to the AI era. A total of 350 employees are expected to be laid off in Israel, where more than half of the company's workforce is employed

July 22nd, 14PM July 22nd, 14PM

Israeli work management software company Monday.com said Wednesday it would lay off 20 percent of its workforce, cutting 620 positions, approximately 350 of them in Israel.

At the end of the first quarter, the company employed 3,211 people, 55 percent of whom were based in Israel. It said the cuts are part of a broader effort to restructure its operations and adapt to the era of artificial intelligence.

Monday.com was set to announce the layoffs later Wednesday but moved up the announcement after being approached by TheMarker for comment. The layoffs are the latest in a string of job cuts announced by major Israeli companies over the past two months, including Wix and drugmaker Teva.

"This is the most painful decision we have made since Monday.com was founded – yet we are confident it is the right decision," co-founders and co-CEOs Eran Zinman and Roy Mann wrote in a letter to employees. "We are not making this change to protect what we have, but to go all-in on what Monday.com can become."

During an analyst call in February, the company said it expected its workforce to grow 15 percent this year. That projection was later withdrawn in March.

Without a fundamental change in the way the company operates, the executives said, Monday.com will not be able to compete effectively in the current market. "We are reducing management layers and creating a flatter organization, which will enable faster decision-making," they wrote.

The company said improving profitability was not the goal of the restructuring. Instead, it plans to increase employees' engagement with customers, helping them implement products and make changes.

Monday.com added that the layoffs are not intended to replace employees with AI. However, in a letter to investors in March, the company said AI had increased programmer productivity by 32 percent and accelerated the pace of product releases by 38 percent.

The company has faced several challenges in recent months. Its stock fell more than 20 percent in a single day following the release of its annual results, after Monday.com withdrew long-term forecasts it had published only a few months earlier.

The stock has lost 50 percent of its value since the start of 2026, leaving the company with a market valuation of $3.1 billion.

The impact of the dollar exchange rate, which has affected companies whose revenue is denominated in dollars while a significant portion of labor costs are paid in shekels, was not addressed in the employee letter.

Zinman told TheMarker in June that currency fluctuations should not drive immediate strategic decisions. "The exchange rate is something that can change in the other direction," he said. "I try not to make strategic decisions based on things that can be tactical."

In May, TheMarker reported that Monday.com was seeking to exit a lease agreement for 10 office floors at a building near its existing headquarters in Tel Aviv and instead planned to sign a smaller lease for three office floors.

Israeli pharmaceutical giant Teva said in June it would lay off 250 Israel-based employees in its active pharmaceutical ingredients division as part of a global restructuring plan amid a slump in demand for the division's products.

Wix announced in May that it would eliminate between 800 and 1,000 positions in Israel. In June, TheMarker reported that the cuts were expected to save the company about $70 million in payroll costs.