What They Did
Monday.com is a work management and project collaboration SaaS platform that charges per seat. Teams used it to track projects, manage workflows, and coordinate tasks. At its peak it was valued at over $14B.
How LLMs Killed Them
AI agents are threatening the entire per-seat SaaS business model. If an AI agent can manage projects, track tasks, and coordinate workflows, companies need fewer human "seats" — and Monday.com charges per seat. Management dropped its 2027 revenue target entirely, signaling they don't know what the future looks like. The stock was caught in the broader "SaaSpocalypse" selloff as investors repriced every per-seat SaaS company. By July the repricing had reached the company's own payroll: on July 22, 2026, Monday.com cut about 630 people — 20% of staff, roughly 350 of them in Israel — to support what it called a "leaner, more focused operating model" built around its AI Work Platform. Co-founder Eran Zinman told employees the move "was not made to reduce costs or replace people with AI," a distinction few outside the company found meaningful given the product it was reorganizing around.
Timeline
- Late 2025: Stock began declining as AI agent capabilities expanded rapidly.
- February 2026: Issued weak guidance, dropping the 2027 revenue target entirely.
- February 9, 2026: Stock tumbled 21% in a single day after earnings disappointed.
- February 2026: Down 70% from its one-year high, caught in the SaaSpocalypse.
- Early 2026: Redesigned the entire product around AI agents working alongside employees.
- July 22, 2026: Cut ~630 jobs — 20% of the workforce, ~350 in Israel — to fund a "leaner" AI-first operating model.
By the Numbers
- Stock down 70% in one year
- 21% single-day drop after earnings
- ~630 jobs cut in July 2026 — 20% of the workforce
- $45–55M in restructuring charges, with up to 20% revenue growth still guided for 2026
- 2027 revenue target abandoned entirely
- Per-seat pricing model fundamentally threatened by AI agents