Monday.com lays off hundreds of employees to focus on AI

Israeli workflow management software developer Monday.com is parting ways with hundreds of employees as part of a corporate restructuring. This decision is part of the company's strategy to redirect its core resources toward AI projects. These changes come at a time when demand for AI technologies is rising in the global tech market. This is reported by Techcrunch.com reports .

The company's management announced that it would cut approximately 20 percent of its total workforce, or about 630 employees. The main goal of this step is to create a leaner and more efficient operational model and to focus entirely on the AI Work Platform project. Since the beginning of this year, Monday.com has been placing great emphasis on reshaping its products around artificial intelligence.

AI Work Platform: A new step toward the future

According to Monday.com, corporate clients increasingly want AI agents to work in the same team as regular employees. The updated platform includes several key tools. Among them are a no-code application builder, a customizable AI agent, workflow automation tools, and chatbots that generate complex reports.

This restructuring process will not be cheap for the company. Monday.com estimates that costs related to layoffs and structural changes are expected to reach between $45 million and $55 million. However, the company believes that its long-term bet on artificial intelligence will pay off.

Global trend in the technology sector

Monday.com is not alone in this. Recently, many major tech giants have been laying off thousands of employees to invest in the AI sector. According to the Layoffs.fyi portal, the rate of job cuts in the tech industry reached a record high in May 2024.

Statistics show that 78 percent of companies that decided to lay off staff this year cited the need to focus on artificial intelligence as the primary reason. In total, more than 122,000 professionals have lost their jobs in the tech sector since the beginning of the year.

Considering the growing interest in corporate management systems and AI solutions in the Uzbekistan market, the strategy of global players like Monday.com serves as an important signal for the local IT ecosystem. Artificial intelligence is not only creating new opportunities but also putting traditional jobs and company structures to a serious test.