Riskified

Riskified, a publicly traded fraud prevention software company in the e-commerce industry, is laying off dozens of employees, including staff in Israel, as it continues to struggle with growth and profitability. The company, which currently employs around 700 people, saw its valuation drop from $3.3 billion at its 2021 IPO to about $930 million. Despite generating approximately $320 million in annual revenue, its growth has been modest at around 10% last quarter, and it has yet to achieve profitability. The layoffs, announced in February 2025, reflect ongoing challenges in streamlining operations and improving financial performance.

Israeli fintech company Riskified, which provides ecommerce fraud prevention, is laying off 40 employees, representing 6% of its total workforce of 750. The decision, announced on February 13, 2024, stems from a challenging macroeconomic environment that has led to lower-than-expected growth rates since its 2021 IPO. CEO Eido Gal explained the move as a necessary step to adjust expenses to revenue and accelerate progress toward long-term profitability targets. The layoffs will affect departments unevenly, with human resources and recruitment facing more significant cuts, and involve streamlining management layers and combining some teams. Despite a strong start with a $3.3 billion valuation at its public offering, the company's market cap has since declined to around $860 million amid broader tech sector downturns.