Israeli workplace software company Monday.com is cutting as many as 620 employees, or 20 percent of its workforce, as it remodels its strategy and operations to adapt to the era of artificial intelligence and automation.

About 350 employees in Tel Aviv are expected to be affected by the downsizing plan. Monday.com employs about 3,000 people globally, of which about half are located in Tel Aviv. In a letter sent to employees on Wednesday, Monday.com promised to provide those affected with a “generous support package.”

“This is the most painful decision we have made since founding Monday.com — yet we are certain it is the right one. We made it. We own it. And we take full responsibility for it,” Monday.com co-founders Roy Mann and Eran Zinman wrote in a letter to employees. “This decision was not made to reduce costs or replace people with AI.”

“We see internal AI adoption as an accelerator of our growth. This change was made to adapt the company to our new vision of doing the work with AI and not just managing it,” Mann and Zinman said.

The developer of a workplace collaboration and management platform said the layoffs come after months of restructuring to transition to a flatter company with reduced management layers and more autonomous teams as AI transforms the role of software and reshapes the industry.

“We entered a new era where AI is transforming the role of software, creating the greatest opportunity our industry has ever seen,” said Mann and Zinman. “The organization we built for our previous chapter is not the organization that fits the new AI........

© The Times of Israel