Layoffs in Israel

StreamElements representing approximately 20% of its workforce on 2022-06-23.

OpenWeb, an Israeli media engagement platform formerly known as Spot.IM, announced a streamlining plan on June 15, 2022, which includes laying off 14 development staff in Israel. This represents about 4.7% of its total workforce of 300 employees. The company is relocating its headquarters from Israel to New York, prompting these layoffs, with plans to hire 14 replacements in the U.S. Additionally, the plan involves reducing the work week to four days for 100 development staff in Israel, with potential salary cuts later in the year for those not meeting targets. These measures aim to prepare OpenWeb for an expected global economic slowdown and a potential IPO in 2023 or 2024. Operating in the digital media and technology industry, OpenWeb had recently raised $150 million at a valuation exceeding $1 billion, serving over 1,000 publishers with its platform.

Israeli website building tools company Elementor has laid off 60 employees, representing 15% of its workforce, in response to an expected global economic slowdown marked by rising inflation and a pending recession. The layoffs, announced on June 15, 2022, primarily affect the marketing department, while engineering and development staff remain largely unaffected. This restructuring aims to enhance business efficiency and secure long-term growth, coming shortly after the company acquired startup Strattic and integrated its 16 employees. Elementor, which develops a popular WordPress plugin, had raised $50 million the previous year, bringing total funding to $66 million.

Cybersecurity firm Deep Instinct, a New York-based AI-driven malware prevention company founded in 2015, conducted layoffs this week, affecting employees primarily in sales and business development roles. The exact number of employees let go and the percentage of the workforce impacted remain undisclosed, but the cuts occurred on Monday amid a broader trend of tech industry downsizing in 2023. Deep Instinct, which has raised over $259 million in venture funding, including a $67 million Series D in 2021, is the latest tech company to adjust its staffing in response to shifting macroeconomic conditions, following a record year for venture funding and hiring in 2022.

Israeli mobile gaming company Playtika announced layoffs of 250 employees on May 31, 2022, representing about 6% of its then 4,000-strong global workforce. The cuts are part of a restructuring to consolidate operations, leading to the closure of game development studios in Los Angeles, Montreal, and London, with some activities transferred to Israel and Poland. This move, which includes canceling new game projects, aims to streamline the company for growth and profitability amid a challenging post-pandemic market. The broader gaming industry is facing pressure as user engagement declines with the easing of lockdowns, contributing to a significant drop in Playtika's share price since its 2021 IPO. Despite remaining profitable, the company is adjusting to economic headwinds, including rising interest rates and inflation, which have prompted similar layoffs across the tech and gaming sectors.

The Israeli-American startup Getta (formerly Gettacar) laid off 30 employees in May 2022 after closing its R&D center in Rehovot. The company, which operated a used car sales platform in the U.S., faced significant difficulties and executed a pivot, including a rebranding and extensive cuts. At its peak, Getta employed around 200 staff across Israel and Philadelphia, but now reportedly retains only a few dozen. This restructuring reflects challenges in the competitive automotive e-commerce sector, impacting a significant portion of its workforce.

BeyondMinds, an Israeli enterprise AI startup, has shut down and laid off all 65 employees after advanced acquisition talks with a tech giant collapsed. The company, which had raised $30 million and specialized in automated machine learning solutions, decided to cease operations due to shifting market conditions that derailed a potential sale. CEO Roey Mechrez confirmed the closure on May 23, 2022, noting that the entire workforce, primarily in R&D along with finance, HR, and sales roles, was affected. This event highlights growing concerns about valuation crises impacting the broader startup ecosystem.

Israeli grocery delivery startup Avo is laying off 500 employees, which represents two-thirds of its global workforce of 750. The layoffs, announced in May 2022, include 350 employees in Israel. This drastic reduction comes after the company failed to raise $70-100 million in funding due to shifting market conditions. Originally focused on delivering groceries to office buildings, Avo expanded to residential deliveries during the COVID-19 pandemic. However, after finding its operations in New York unprofitable and facing a post-pandemic market contraction, the company decided to return to its original business model. Consequently, it is cutting staff across operations and head office roles while seeking a buyer for its home delivery segment.

Israeli cybersecurity unicorn Checkmarx is laying off dozens of its approximately 700 global employees as part of a restructuring following its recent $1.15 billion acquisition by private equity firm Hellman & Friedman. The layoffs, confirmed in May 2020, come just a month after the major exit and are attributed to the company's reorganization plans, which were delayed by the acquisition process and the COVID-19 pandemic. Operating in the application security industry, the company stated the changes are aimed at building a long-term, efficient model despite the broader economic shock, emphasizing that the shift to digital solutions presents future growth opportunities for its security business.

Bringg, a Tel Aviv-based on-demand delivery management software company, has laid off approximately 10% of its workforce in Israel, affecting 10-15 employees out of its 110-person team there. This decision, communicated via a Zoom meeting on Holocaust Remembrance Day (April 21, 2020), marks a reversal from CEO Guy Bloch's earlier statement that the company was "shifting up a gear" while others cut back. The layoffs are part of the broader economic impact of the COVID-19 pandemic, though the company has not officially confirmed the reason. Founded in 2013 and serving major clients like Coca-Cola and Walmart, Bringg employs around 130 people globally and recently raised $30 million in Series D funding.

Hibob, a human resources software company, laid off approximately 20% of its workforce, affecting around 40 employees out of a total of roughly 200. The layoffs occurred in early 2023 as part of a strategic restructuring to streamline operations and improve efficiency amid broader economic pressures in the tech industry. The company, which provides HR and people management platforms, operates on a global scale, serving small to medium-sized businesses. This move reflects a trend of workforce adjustments within the SaaS and HR tech sectors during that period.

In March 2020, Israeli facial recognition company Anyvision conducted layoffs, reportedly affecting around 10% of its workforce. The company, which had raised significant venture capital, cited a strategic shift and the need to focus on core products amid the early economic uncertainties of the COVID-19 pandemic. Operating in the competitive AI and surveillance technology industry, Anyvision aimed to streamline operations and reduce costs, moving away from less profitable projects. The layoffs were part of a broader restructuring to ensure long-term sustainability and adapt to changing market demands.