Monday.com, a company that makes software for managing work and projects, announced on July 22, 2026 that it is letting go of about 630 employees. That is roughly 20% of its total workforce (TechCrunch). The company shared the news in a formal filing with the SEC, the U.S. government agency that oversees publicly traded companies.

In the filing, Monday.com said the layoffs are meant to "support a leaner, more focused operating model." Earlier in 2026, the company had redesigned its entire product around artificial intelligence. According to its 2025 annual report filed March 13, 2026, Monday.com is shifting from its roots in project tracking into what it now calls an AI Work Platform (TechCrunch).

That platform has four parts: a tool that lets people build apps without knowing how to code, a customizable AI assistant, a tool for automating repetitive work tasks, and a chatbot (TechCrunch). The company is cutting jobs connected to its older products so it can concentrate on these new ones.

Monday.com expects the layoffs to cost between $45 million and $55 million in one-time charges (TechCrunch). At the same time, the company raised its profit margin forecast for 2026 (Benzinga). Its stock price went up in early trading after the news (Benzinga).

The higher profit forecast and the stock market's positive reaction tell their own story. Investors saw the job cuts not as a sign of trouble but as a deliberate move to save money and refocus. We have seen this pattern before, when large software companies like Salesforce and Splunk cut staff in 2023 and 2024 and saw their stock prices rise as a result. Monday.com's situation is more specific because the cuts come with an actual change in what the company sells, not just a general push to cut costs.

What is harder to know from the outside is whether the employees who remain have enough AI expertise to make the new platform succeed. Losing 20% of a workforce affects more than the number of people on the payroll. It changes how teams are organized, how much knowledge the company retains, and how quickly the new products can be built. The $45–55 million charge is a financial number. The real risk is whether the remaining team can deliver, and that will take several months to judge.

The wider picture is sobering. More than 122,000 technology jobs have been cut in 2026 so far, according to Layoffs.fyi (TechCrunch). Monday.com's 630 cuts add to a trend that has now lasted three straight years. The reasons have shifted over time, from correcting a hiring boom in 2023, to protecting profits in 2024, to today's explanation of reorganizing around AI. Whether that explanation reflects a real plan or is simply the most acceptable story for investors is something only the company's future products can answer.

For now, Monday.com has made its decision. It has narrowed its focus, accepted a significant one-time cost, and told investors to expect better profitability. The bet is that an AI-driven platform will create more value than the project-management software the company is moving away from.