Israeli workplace software maker Monday.com is laying off hundreds of employees as part of a restructuring plan to refocus its investments on artificial intelligence projects.

The company said it is reducing its workforce by 20%, or about 630 employees, to “support a more agile and focused operating model” while focusing on its AI workplace platform.

Monday.com earlier this year pivoted heavily to make its AI platform a core offering, redesigning its entire product around the belief that its enterprise customers increasingly want AI agents to work alongside their employees. Currently, the AI ​​Work Platform comprises a no-code app builder, a customizable AI agent, a workflow automation tool, and a chatbot that can perform tasks such as generating reports and updating dashboards.

The company joins a string of big tech companies that have laid off hundreds of thousands of people as they seek to invest more in AI. Tech layoffs in May hit a monthly high not seen in years, and a record 78% of companies have blamed the need to refocus their efforts around AI as a reason for laying off people this year, according to Layoffs.fyi.

So far, more than 122,000 tech jobs have been eliminated in 2026, Layoffs.fyi data shows.

Monday.com expects to incur between $45 million and $55 million in charges due to the restructuring.