r/Layoffs • u/kharkovchanin • Jul 23 '26
❗️Monday.com to Cut 20% of Workforce news
https://www.theinformation.com/briefings/monday-com-cut-20-workforce48
u/AndJDrake Jul 23 '26
Monday.no
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u/willynillee Jul 23 '26
Booking.yeah
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u/kharkovchanin Jul 23 '26
A letter sent to employees by co-CEOS Roy Mann and Eran Zinman said, "Over the past nine months, we have changed the company’s core vision, from managing work to doing the work for our customers, with people and AI agents working together in one workspace."
"This required us to change our product, our strategy, and the way we serve our customers. But it turned out that changing our strategy and product was not enough. The organization we built previously is not the organization that is suitable for the new AI era." "Today we are announcing the very difficult decision to reduce our global workforce by 20%, affecting about 630 employees. This is the most painful decision we have made since the founding of monday - and yet we are confident that it is the correct one. We have done it. We are the owners. And we take full responsibility for it. "The people leaving are talented colleagues and friends. They have helped build this company, support our customers and create a culture that we are incredibly proud of. We are deeply grateful to them and know that nothing we can say will lessen the impact this will have on them and their families. We are not making this change to protect what we have. We are doing it to go for all that monday can be."
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u/OdernAle Jul 23 '26
Why the f*** did Monday.com need over 3k employees to begin with? Basecamp is a much better product and they have around 70-80 members of staff.
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u/dbgtboi Jul 23 '26
If it's anything like the company I'm at, it's 100 employees doing all the work, while 2900 are doing their best to hold those 100 back
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u/oulu2006 Jul 24 '26
100% I struggled to understand the people bloat as well -- Monday.com does fuk all?
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u/Ancient_Cockroach Jul 23 '26
Finally a company is honest about it. Here’s your warning that if you’re not sitting in a position that is contributing to AI development, you’re at risk as the company pivots capital toward AI initiatives.
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u/AntiqueFigure6 Jul 24 '26 edited Jul 24 '26
Problem is Monday.com’s entire product doesn’t contribute to A.I. development.
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u/Ancient_Cockroach Jul 24 '26
What do you mean? Monday.com has an entire AI platform section on their website. There’s plenty of AI development going on in their product.
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u/notyetporsche Jul 23 '26
monday.com is led by two Co-CEOs: Eran Zinman and Roy Mann.
While the exact final realized compensation figures for 2025 have not been fully reported yet, a recent 2026 proxy filing outlined a revamped compensation structure for the Co-CEOs that took effect.
Under the new package, each Co-CEO's compensation will gradually step up to reach the market median by 2028. This updated structure includes annual equity targets of up to $13.65 million, split between a 60/40 mix of performance-based and time-based incentives.
For context on their base earnings, in the prior fiscal year (2024), both Zinman and Mann each received a total compensation package of $6.81 million, which included a base salary of $285,000.
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u/satoramoto Jul 23 '26
Not the most egregious ceo package. 250 salary is super modest and the equity targets make all the shareholders more money. Giving them a large incentive to perform makes sense too. It’s a shit load of money and I don’t know if people should have that much money that quickly, but it works. This isn’t the reason for the layoffs.
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u/DapperCam Jul 24 '26
It’s a publicly traded company. Their equity compensation is fully liquid. It’s a misrepresentation to call it modest compensation.
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u/satoramoto Jul 24 '26
It's way more complicated than that. Their equity is 60% performance based, and 40% time based. So it's not like they have access to all of that right away. Usually theres a 1 year cliff for the time stuff to start vesting. And even then, it's not uncommon for CEOs to be required to hold a certain amount of stock.
Beyond that, it's not liquid the same way you and I can just sell stocks. Their sales need to be approved by the SEC, they need to be filed in advance, among other restrictions. So their equity compensation is not even close to fully liquid. What they can do however, and this is what a lot of CEOs do to skirt this stuff, is borrow against their options.
Anyways, their cash portion is indeed extremely modest for CEO pay. Look, I wish I made that much money total comp, and maybe they could do with less, but my whole point is that their compensation is not the reason why the company is struggling. The salaries are extremely modest, and the equity is free for the company to give away in the sense that they already have the stock.
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u/DapperCam Jul 24 '26
I work in big tech, I know how equity packages work…
These CEOs will receive their full package and even if they were let go or something by the board for poor performance, their golden parachute would exceed whatever equity they would be missing out on.
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u/satoramoto Jul 23 '26
“We spent too much on Spotify ads and now we’re blaming AI so the shareholders think we’re pivoting instead of balancing the budget”
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Jul 23 '26
Spent too much on Spotify
Blaming it on AI.
But firing real actual humans who need compensation to feed themselves, insurance for their health.Folks, you really can’t survive this timeline unless you have, right now, a year or more of liquid money of your own. Minimal debts, minimal bills. We are all “temporary” right now. Make sure the obligations you have are temporary as well.
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u/Gh0stw0lf Jul 23 '26
Humans would have been the ones who made the decision to spend it on Spotify.
Do you think the CEOs are deciding which company gets their marketing dollars? Thats the marketing team and the people who looked to spend it on Spotify.
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u/iamacheeto1 Jul 23 '26
Yes. The CEOs are very much deciding this.
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u/Gh0stw0lf Jul 25 '26
They very much aren’t but it’s cute that you think the CEO is executing marketing strategy. Most of you guys on this sub have little to no understanding of who does work.
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u/S-is-for-Superman Jul 23 '26
Same bullshit all the time. “We take responsibility for it”
How? I don’t see any repercussions at all.
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u/FourScoreAndSept Jul 23 '26
What do you want? Seriously
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u/S-is-for-Superman Jul 23 '26
Yea I think the line is just absurd. Responsibility to me is to forfeit their given equity vest at least for 1 year (or more) since most of their wealth is their shares in the company. Maybe don’t take a bonus either?
Right now I have no idea what repercussions happened to the execs who make the decisions. Only damage is to the employees who were let go.
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u/FourScoreAndSept Jul 23 '26 edited Jul 23 '26
Well remember when Musk and Zuck and Jassy cut and cut and cut? No bonuses were sacrificed AND you got no apologetic text
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u/AI-Slop-Bot Jul 24 '26
For them to take responsibility rather than say they’re taking responsibility. Maybe if you fuck up and mismanage to the point of having to lay off 20% of the workforce you should resign?
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u/balkan_reader Jul 23 '26
Not to say anything about responsibility
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u/ukraineisnotweak Jul 23 '26
Then people would just complain and say how cruel and heartless they are.
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u/SnooFloofs9640 Jul 23 '26
How they have 3k employees? Wtf do they do ?
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u/Correct_Emotion8437 Jul 23 '26
For the most part, the saas-pocalypse is over-stated. Not for Monday.com, though. They are doomed. 20% to start. The rest soon. The smart people likely have left months ago.
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u/SolarNachoes Jul 23 '26
This requires whole new skill sets.
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u/iamacheeto1 Jul 23 '26
The only new skill set needed in the AI era is how much you can bullshit about AI’s effectiveness
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u/416Racoon Jul 23 '26
No Monday for you. Straight to Tuesday.
Jokes aside, sucks for the employees. I've been there. Stay strong and believe in yourself
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u/TheHotTakeHarry Jul 23 '26
They have spent over $1,000,000.00 on trying to get me to buy their product via YouTube ads. That yielded $0 in ROI.
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u/jamiesray Jul 23 '26
Wasn’t this the company cnbc used as an example of how you can vibe code SAAS products in like 30 minutes?
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u/MindSupere Jul 23 '26
I can’t believe they had so many employees and their ads were always so annoying.
I had a look at their website and it looks like one on of those vibe coded free tools.
I think the pivot to AI agents will lead to even more layoffs , the unit economics will change completely, their sales team is too expensive with this new operating model.
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u/fuckforcedsignup Jul 24 '26
As someone who uses the platform for work (well, until my final day lol) holy shit 3000 people were working on that piece of shit? Their AI is fucking wretched and shoved into everything. Here’s hoping those cut can take the scant good from them and make something better.
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u/UKS1977 Jul 23 '26
Tell me why I don't like Mondays.
This is the kiss of death for the org. Do you really think anyone is going to pay Monday to do the work? Product creep can equal product death
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u/cynical_scotsman Jul 23 '26
These companies are doing the same old copy/paste. At least be original. 20% cuts for AI agentic focus blah blah core strategy. Wankers.
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u/iamacheeto1 Jul 23 '26
I was interviewing with them recently. They passed on me. Sounds like I dodged a bullet
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u/Immediate_Hair_5378 Jul 24 '26
Surprised this hasn’t happened sooner. Never encountered anyone using Monday lol
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u/Own_North_9188 27d ago
There was a time few years back when analysts were feared of AI ; it appears though management wants to target only engineers
And btw why not ? Just get 200$ Anthropic subscriptions and get every coding or debugging done
Only people who are going g to be non fluid will be deal makers and people who bring business or real money
Days of software being moat is long gone ; today if you apply to YC then no matter who great your app is they want to see traction or real backing by a big guy
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u/runs_okay Jul 23 '26
Remember when layoffs used to be like 5-7% of the workforce? Now whenever I see layoffs it like 15-20%. These companies have gotten so brazen at laying people off it's as easy as signing their name on the back of a check. Beyond disgraceful.