Monday.com cut 20 percent of staff for AI, but now its AI leaders are leaving
Monday.com laid off over 600 people to pivot to an AI platform, but the executives meant to lead that shift are now walking out the door.
Layoffs · Source: Calcalistech
What happened
In July, Monday.com announced a massive organizational restructuring. The company cut roughly 20 percent of its global workforce. This decision affected between 620 and 630 employees. Leadership told the staff this move was not about cutting costs or replacing people with artificial intelligence. Instead, they claimed it was a strategic shift to build an AI-powered work platform.
Now, the executives meant to lead this new vision are leaving the company. Orly Stern Izhaki, the vice president of the AI Work Platform, is expected to depart within a month. Sergei Liakhovetsky, the vice president of research and development, and Seetvon Amir, the vice president of product, are also exiting. A senior IT director of six years is leaving at the end of October, following the departure of another R&D vice president last month.
Monday.com stated these exits involve a mix of management decisions and personal choices. The company is still growing its revenue, and its AI products recently doubled their annual recurring revenue. However, losing the core architects of a major AI pivot raises serious questions. The market is watching closely to see if the company can execute its strategy without its key leaders.
By the numbers
- 20 percent — Portion of the Monday.com global workforce cut during the July restructuring
- 620 to 630 — Estimated number of employees affected by the layoffs
- 17 percent — Portion of net-new annual recurring revenue coming from AI products in the second quarter
- 9 — Consecutive quarters of slowing revenue growth for the company
Why it matters
Job seekers need to look closely at companies claiming to pivot to artificial intelligence. A press release about an AI strategy does not guarantee job stability if the core leadership team is unstable. When you interview, you must ask who is actually leading the AI projects and how long they have been there. If the architects of a strategy do not stay to build it, the pivot might just be empty words.
This situation shows that enterprise software companies are struggling to balance growth with new technology demands. Monday.com has seen its revenue growth slow for nine straight quarters. When growth slows, companies often use artificial intelligence as a reason to restructure and cut staff. This trend will likely continue across the tech industry as companies try to please the market while figuring out their actual product direction.
Who this hits
Tech workers interviewing at AI companies
You cannot take a company's artificial intelligence strategy at face value. You need to research the tenure and stability of the engineering and product leaders before accepting an offer.
Laid-off software engineers
Companies are still cutting traditional roles to fund new technology development. You must position your skills to align with where companies are actually spending money, not just what they say in press releases.
Current enterprise software employees
Watch your leadership team closely. If the executives driving your division's strategy suddenly leave, it is a strong signal that more organizational changes might be coming.
What to do this week
- Track executive turnover at target companies using professional networks before you apply for a role.
- Ask hiring managers directly about the product roadmap and leadership stability for the team you are joining.
- Look past buzzwords in job descriptions and ask what specific tools or agents the team is actually building today.
- Monitor industry news for companies that announce layoffs at the same time they announce a new product focus.
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My take
I see too many companies using AI as an excuse to cut staff and reset their business. If you lay off over 600 people to build an AI future, but your AI leaders quit a few months later, your strategy is broken. Do not blindly trust a company's AI pivot when choosing your next job.