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・The restructuring is expected to generate $45 million to $55 million in net charges, with most costs recognized during the second half of 2026.
・monday.com also reaffirmed its full-year revenue growth and free cash flow guidance.
・The company raised its non-GAAP operating margin forecast to approximately 15%.
monday.com (MNDY) shares appear set to break their losing streak on Wednesday after the company announced its restructuring plan to cut around 20% of its current workforce as part of a broader effort to realign the company around its AI Work Platform strategy.
In a filing with the Securities and Exchange Commission, the company said the plan reflects an ongoing transformation of its product, marketing, and go-to-market strategy. It added that the aim was to build a leaner operating model to support continued investment in AI-driven growth.
MNDY’s stock rose around 1% in midday trade. Retail sentiment around the Israeli enterprise software firm remained in ‘bullish’ territory over the past day, while chatter rose to ‘normal’ from ‘low’ levels. Platform data showed an over 300% jump in message volume over the last 24 hours.
MNDY Cuts Workforce But Continues Key Strategic Hiring
Despite the workforce reduction, monday.com said it expects to keep hiring in key strategic areas throughout the remainder of 2026.
The company estimated a cost of $45 million to $55 million in net charges tied to the plan. That includes $30 million to $35 million in severance, employee benefits, and related costs, plus another $30 million to $35 million in charges related to impairment of certain office space.
It added that costs would be partially offset by roughly $15 million in non-cash credits from share-based compensation. Most of these charges are expected to hit in the second half of 2026, with the plan substantially complete by then.
Profitability Outlook Improves Amid Job Cuts
Despite the restructuring, monday.com maintained its full-year 2026 revenue growth guidance of 19% to 20% year-over-year and its adjusted free cash flow margin guidance of 19% to 20%, unchanged from prior guidance.
However, it did raise its non-GAAP operating margin outlook to approximately 15%, up from a prior estimate of approximately 13%.
MNDY’s stock is down 50% this year and has fallen over 70% in the last 12 months.
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