Monday.com, an Israeli software maker, has announced a significant restructuring plan, resulting in the layoff of approximately 630 employees, equivalent to a 20% reduction in its workforce. The company aims to refocus its investments around AI projects, specifically targeting its AI Work Platform.
The AI Work Platform is a comprehensive suite of tools, including a no-code app builder, customizable AI agents, workflow automation, and a chatbot capable of tasks such as generating reports and updating dashboards. This pivot towards AI follows Monday.com's earlier decision to redesign its entire product around the belief that enterprise customers increasingly desire AI agents to collaborate with employees.
This move is not an isolated incident, as many large tech firms have undergone significant layoffs in recent months to invest more in AI. In May, tech layoffs reached a historic high, with a record 78% of companies citing a need to refocus efforts around AI as a reason for letting employees go, according to Layoffs.fyi. To date, over 122,000 tech roles have been cut in 2026, with Monday.com expecting to incur $45 million to $55 million in charges due to the restructuring.
The trend of tech companies investing heavily in AI raises concerns about the future of work and the potential impact on the UK job market. As AI continues to transform industries, UK businesses must adapt to this new landscape, potentially leading to job losses in sectors that are heavily reliant on manual labour.
Regulatory bodies, such as the UK's Information Commissioner's Office (ICO), are keeping a close eye on the development and deployment of AI technologies, ensuring they align with data protection and privacy regulations. The European Union's Artificial Intelligence Act, set to come into effect for now, aims to establish a framework for AI development and deployment, addressing concerns around accountability and transparency.
Experts suggest that the UK must strike a balance between embracing AI-driven innovation and mitigating the risks associated with job displacement. With the UK government's focus on AI as a key driver of economic growth, it remains to be seen how this trend will shape the country's job market and the skills required for the future workforce.