Israeli technology giant monday.com announced today a major organizational restructuring that will include layoffs of around 20% of its global workforce, with 620 employees expected to leave the company.
According to the company’s announcement, the extensive layoffs are part of the largest product transformation in monday.com’s history in recent months: a redesign of its platform around a vision of an artificial intelligence-based work platform. The company explained that the introduction of AI technology is fundamentally changing customer expectations from software and creating a new market in which customer behavior is changing in real time, while the competitive advantage is shifting toward companies that move faster and remain closer to their customers.
To align its organizational structure with its product vision and achieve greater speed and focus, the company is flattening its organizational structure. The move includes reducing management layers in order to create smaller, more autonomous teams that will enable faster decision-making and more efficient execution, alongside broader and clearer ownership over projects.
In addition, the company is adopting a new go-to-market model designed to guide existing customers into the AI era at a pace suited to them, while simultaneously responding to growing demand from new customers who are adopting AI products from their first day.
monday.com emphasized that the move is not a short-term cost-cutting measure or the result of AI-based efficiency efforts, but rather a reallocation of resources to invest in the company’s employees, product development, AI engines and future growth.
The company’s co-CEOs, Roy Mann and Eran Zinman, addressed employees in a letter on Wednesday, explaining the considerations behind the move and expressing their deep appreciation for the professionalism and contributions of the employees whose roles are ending. The company pledged to support departing employees by providing a package that includes financial assistance, accelerated stock vesting, continued medical coverage and emotional support.
The CEOs added in their letter that they are directly approaching other technology companies in the industry that are currently hiring, emphasizing that the departing employees are skilled professionals among the most talented people in the industry. They said monday.com would help connect them with organizations seeking new employees.
Source:
www.jpost.com
