Vesttoo, an Israeli insurtech startup, is laying off approximately 150 employees, which represents about 75% of its total workforce. This drastic reduction, announced in early August 2023, comes in the wake of a major fraud scandal involving an estimated $4 billion in allegedly fake letters of credit used in reinsurance transactions on its platform. CEO Yaniv Bertele stated the layoffs were a painful but necessary step to give the company a fighting chance at survival, preserving only a small core team for essential operations as it navigates the crisis and attempts to rebuild its business model aimed at revolutionizing the reinsurance industry.
