Monday.com cuts 600 jobs citing AI-driven restructuring, as a Clyde and Co survey finds 86% of corporate leaders now rate AI as a high-impact risk

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Monday.com cuts 600 jobs citing AI-driven restructuring, as a Clyde and Co survey finds 86% of corporate leaders now rate AI as a high-impact risk | Folio

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Briefing

AI & Law

Monday.com cuts 600 jobs citing AI-driven restructuring, as a Clyde and Co survey finds 86% of corporate leaders now rate AI as a high-impact risk

Two converging stories today sharpen the legal and governance implications of AI adoption for corporate clients and their advisers. Monday.com, the Tel Aviv-based work management software company, announced it will lay off approximately 600 employees, representing around 20% of its workforce, in a restructuring it describes as tied to its 'AI-driven growth strategy'. The company filed an SEC disclosure describing the cuts as part of a restructuring connected to its ongoing transformation of product, marketing, and go-to-market strategy. It expects $45 million to $55 million in net restructuring charges but still projects up to 20% year-over-year revenue growth for 2026. Monday.com joins a substantial list of technology companies that have publicly attributed workforce reductions to AI in 2026, with a Financial Times analysis cited in the sourced material finding that US tech companies have cut nearly 140,000 jobs since the start of the year. Among those, Amazon, Oracle, Meta, and Microsoft collectively account for close to 50,000 reductions. The same analysis found that companies citing AI as a factor in layoffs have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements. Against that backdrop, a Clyde and Co Corporate Risk Radar survey published today finds that 86% of senior leaders (CEOs, CFOs, COOs, general counsel, and board members) now rate technological risk, including AI, as high impact. That figure was 46% just a year earlier, representing the largest year-on-year increase of any risk category in the research. Clyde and Co partner Tim Crockford noted that AI governance frameworks risk being out of date almost as soon as they are adopted, given the pace of technological change. Together, these data points confirm that AI governance, employment restructuring advice, and corporate risk disclosure are becoming core legal workstreams rather than edge cases.