monday.com Lays Off 630 People for an AI Strategy Despite 24% Revenue Growth

monday.com, maker of the task tracker of the same name, announced in late July 2026 that it is cutting 20% of its workforce, about 630 people. In a filing with the US Securities and Exchange Commission, the company cited a shift to an "AI-driven growth strategy," even though first-quarter revenue grew 24% to $351 million.

What exactly happened at monday.com

monday.com has cut about 630 employees, one in five at the company. The SEC filing frames the official reason as a move to a "leaner, more focused operating model" as part of an "AI-driven growth strategy."

Key facts from the company's public filings:

• Layoffs: ~630 people, 20% of staff
• Q1 2026 revenue: $351 million (+24% year over year)
• Full-year 2026 guidance: revenue growth of 19–20%
• Official rationale: "AI-driven growth strategy" (from the SEC filing)
• Place on TechCrunch's list: the 21st major tech company in 2026 to cite AI as a factor in layoffs

"A leaner, more focused operating model" is the exact phrasing

monday.com's SEC filing uses to justify the cuts.

Why investors see a contradiction

Investors are wary because monday.com's financials give no obvious grounds for emergency restructuring. First-quarter 2026 revenue grew 24% to $351 million, and the company guides for another 19–20% growth this year. Against that backdrop, cutting 20% of staff looks less like a forced move and more like a management decision that an AI narrative conveniently packages.

The economic logic is straightforward: 630 employees represent tens of millions of dollars a year in salaries and benefits. Pointing to an AI transformation lowers the reputational cost of the decision, because it reads as a strategic choice rather than cost-cutting.

21 companies in seven months is already a trend

monday.com is the 21st major tech company in 2026 to publicly name AI as a factor in a layoff decision, according to TechCrunch, which has kept a dedicated list since the start of the year. Notably, many companies on the list reported acceptable or positive financial results at the time they announced their cuts.

The wording repeats itself: "AI transformation," "reallocating resources toward automation," "investing in AI infrastructure." It recurs often enough that a number of analysts have started to treat "the reason is AI" as convenient corporate rhetoric rather than an honest account of structural change.

What this means

AI is becoming a dual narrative in corporate communications: both a real tool for optimizing labor and a convenient cover for decisions driven by financial discipline. For tech workers, it is a signal that positions can be at risk even at growing companies, if automation and a reordering of priorities coincide with a favorable market context.

Frequently asked questions

Why is monday.com laying people off while revenue is growing?

The company attributed the cuts to a shift to an "AI-driven growth strategy," according to its official SEC filing. Despite 24% revenue growth in the first quarter of 2026, to $351 million, monday.com is restructuring and cutting its workforce by 20%, about 630 people.

How many companies cited AI in layoffs in 2026?

According to TechCrunch, by the end of July 2026 at least 21 major tech companies had officially named AI as a factor in decisions to cut staff.