Pagaya

Fintech company Pagaya is laying off 100 employees, representing about 20% of its 540-person global workforce, with most cuts affecting its Israeli operations. This second round of layoffs in a year and a half, following 140 job cuts in early 2023, is part of a continued reduction of the company's presence in Israel. Despite reporting positive financial results for Q1 2024, the Nasdaq-traded firm, which specializes in AI-driven loan underwriting, is restructuring across all departments and management levels. The move aligns with a broader trend of cost-cutting and operational consolidation, potentially influenced by the ongoing regional situation.

Pagaya, an Israeli-American fintech company, laid off 140 employees in January 2023, representing 20% of its total workforce. Approximately 110 of the affected positions were based in Israel, with the remainder in the U.S. The company stated the restructuring, expected to yield $30 million in annual savings, was a difficult but necessary decision to maintain agility and focus on growth. This move followed a dramatic decline in Pagaya's market valuation, which had peaked at around $20 billion after its SPAC merger in mid-2022 before plummeting over 95% to approximately $640 million, a stark reversal for the firm that was briefly Israel's highest-valued company.