Two software companies on opposite sides of the world have now done the same strange thing to themselves, and the reason they gave is not the one anyone expected.

On July 22, monday.com, the Israeli work-management company listed in New York, filed notice of a roughly twenty percent workforce reduction, about 620 people, with restructuring charges of forty-five to fifty-five million US dollars. In the same breath it reaffirmed full-year revenue guidance of about 1.47 billion US dollars and nineteen to twenty percent growth. Grow twenty percent, shrink twenty percent, same announcement.

Co-CEO Eran Zinman said the decision "was not made to reduce costs or replace people with AI," that "the organization we built for our previous chapter is not the organization that fits the new AI era," and that work which "could have been done in a few days" had instead been taking "many months with multiple meetings and endless friction." Then the line that makes the episode: "This wasn't people's fault." The fix he describes is a flatter organisation with fewer management layers and smaller, more autonomous teams. The constraint AI relieved, in his telling, was coordination. Not the cost of labour.

He is not alone. In March, Atlassian, the Australian equivalent, cut about 1,600 people, roughly ten percent, while growing thirty-two percent, explicitly to "self-fund further investment in AI and Enterprise Sales." Mike Cannon-Brookes was unusually straight about it: their approach is not that "AI replaces people," but "it would be disingenuous to pretend AI doesn't change the mix of skills we need or the number of roles required in certain areas."

Stephen Forte on why two companies that sell AI betting their own org charts is worth more than any vendor presentation, why Salesforce is the awkward third case that teaches the distinction between an AI-shaped decision and a cost cut wearing AI language, and why revenue per employee, a number sitting underneath headcount planning, peer benchmarking, board judgement and acquisition pricing, just moved about twenty-two percent at one company through nothing more than a redrawn structure. No action items in this one. One idea, and one number that stopped meaning what you think it means.