Israeli workplace software maker Monday.com is laying off hundreds of employees as part of a restructuring plan. The software company announced the layoffs in an Securities and Exchange Commission (SEC) filing. The company said it is reducing its headcount by 20%, or about 630 staff, to “support a leaner, more focused operating model” as it concentrates on its AI Work Platform.In the SEC filing, the Tel Aviv-based company said that it has “initiated a restructuring plan.” In a memo sent to employees about the layoffs, posted to LinkedIn, Eran Zinman, a cofounder of the company, claimed that the move was not about replacing employees with technology.
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“We are not making this change to protect what we have. We are making it to go all in on what monday.com can become,” the memo reads.
Here’s the full memo sent by Eran Zinman, Co-founder and Co-CEO at Monday.com, to employees
Hi everyone,Over the past nine months, we have shifted our core vision moving from managing work to doing the work for our customers, with people and AI agents working together in one workspace. This has required us to change our product, our strategy, and how we serve our customers.But it became clear that changing our strategy and product is not enough. The organization we built for our previous chapter is not the organization that fits the new AI era. Today, we are announcing the very difficult decision to reduce our global workforce by ~20%, affecting around 620 people.This is the most painful decision we have made since founding monday.com – yet we are certain it is the right one. We made it. We own it. And we take full responsibility for it.The people leaving are talented colleagues and friends. They helped build this company, support our customers, and create a culture we are deeply proud of. We are incredibly grateful to them, and we know that nothing we say can lessen the impact this will have on them and their families.We are not making this change to protect what we have. We are making it to go all in on what monday.com can become.Why are we making this change? We entered a new era where AI is transforming the role of software, creating the greatest opportunity our industry has ever seen.We have a new market to capture. Without a fundamental change in how we operate, we will not be able to compete and win that market.To fully realize this opportunity, and ensure monday.com is positioned to lead in this landscape, we need to move faster, execute more decisively, take on new challenges, respond quickly to market changes, and empower people in the company to create greater impact. Some of the things we are changing in monday:A flatter organization – We are reducing management layers, creating more empowered teams, and enabling faster decision-making.More autonomous teams – We are moving from teams with many dependencies to smaller groups with broader ownership and greater authority to execute.A new go-to-market model – Our new offering is opening a new market, and that market requires us to work differently. New and existing customers increasingly expect deeper implementation support as they adopt AI. We will work more closely with customers, increase our on-site presence, create new roles, and adapt many existing ones.Improving margins was not the purpose of this decision. We intend to reinvest the vast majority of the savings in our people, our products, AI, and future growth.For the people leaving monday.comThank you. Thank you for all your hard work, for the significant impact you have made, for caring so deeply about monday.com, and for always being willing to help and lend a hand. We know this is part of our culture, and it is something we consistently hear from everyone who interacts with people at monday.com.We want to be very clear: this decision is not a reflection of your performance, your contribution, or your value. It is the result of a management decision about how to structure the company for its next chapter.We are committed to supporting you through this transition with care, respect, and meaningful assistance. We will do everything we reasonably can to help you find your next opportunity, and we will provide you with a generous support package.To companies that are hiring: we recommend these people wholeheartedly. They are exceptional professionals and teammates, and we will help connect them with organizations looking for outstanding talent.For the people stayingIt is not easy to be part of such a significant change or to see colleagues and friends leave so quickly. We understand how difficult this will be. We also owe you clarity about what this change means.The change is not about asking fewer people to do the same amount of work. We are making real choices about what we will stop doing. We will simplify how we work, remove unnecessary friction, and give teams more authority to make decisions.The company that comes out of this change will have clearer priorities, fewer layers, faster decisions, and greater ownership.We are deeply confident about our futureOur path is very clear to us. This is a change we have chosen to make, and we are taking full responsibility for it. We have never seen such a significant opportunity in software, driven by such exciting technology.Nothing gives us more confidence than seeing how new and existing customers are responding to our new offering, and seeing adoption of our AI products accelerate.Every week, we see more evidence that our strategy is the right one. Customers are embracing our new vision, adoption of our AI capabilities continues to accelerate, and our confidence continues to grow.Our momentum is strong, and we believe we are on the right path to success on a massive market opportunity.To ease the uncertainty around this we will send all employees an email message within the next hour, followed by a personal call from one of your managers.For all managers – we know how difficult it is to process this personally, even as you continue to lead your teams. We have every confidence in your leadership and know you’ll approach these conversations with the care, clarity, and respect that define our culture. Thank you for being there for your people during this transition.Thank you,Roy & Eran