Tipalti team. credit Rami Sinai
Sanppy, Tipalti and StreamElements are all making cutbacks and letting go of employees in a sign that Israel Startup Nation has not begun to recover from the disastrous Q4 that it suffered in 2022.
Tipalti, a fintech business that creates and runs a global financial transfer network, laying off about 11% of its workforce, 123 people. This comes just 6 months after Tipalti was looking to expand its workforce.
Tipalti explained the cutbacks in a move saying that in spite of strong demand for their financial automation solutions and ending what they called their “best-ever quarter,” it was still forced to “adapt to the changing financial landscape and we are announcing a reorganization that includes laying off 11% of the company’s employees, alongside other cutbacks of company expenses. The meaning for our Israeli site is that we are parting with 9% of the local employees.”
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Founded in 2010 by CEO Chen Amit, and Oren Zeev, Tiplati has raised $550 million to date in several rounds, at a value that reached $ 8.3 billion this year, placing it among the 15 private fintech companies with the highest valuation in the world.
Snappy, an Israeli startup that offers a new platform for gift giving, is laying off 100 employees, or roughly 30% of its workforce.
Snappy CEO Hani Goldstein told the company’s employees, “Over the past few years, Snappy experienced tremendous growth and benefited from multiple tailwinds. This led to accelerated investment as well as increased hiring in an effort to sustain that momentum. We built our strategic plans around expectations for continued growth and global expansion.”
But then she added, “Sadly, we are now part of an entirely different reality and Snappy is experiencing the impact of economic shifts and uncertainties that many other companies in the tech industry are experiencing. Unfortunately, we must make extremely painful choices in order to orient Snappy’s financial profile toward sustainable growth and profitability.”
Founded in 2015 by, Hani Goldstein and Dvir Cohen, Snappy calls itself an all-in-one enterprise gifting platform, “using the power of experience to delight and connect people around the world.” So it is kind of like Santa Clause, only it makes money from what it does.
As for StreamElements, an Israeli startup that offers interactive tools to help companies manage communities and create revenue for streaming content creators, the company is firing about 20% of its people, or 40 workers. The move comes just 6 months after the startup let go of dozens in a previous round of layoffs.
“Alongside the growth experienced by the company over the past year, the continued slowdown in the advertising market and among content creators hasn’t passed us over,” StreamElements said in a statement. “We predict an additional drop in our growth this year and therefore we are restructuring with the goal of continuing to grow while building a route to profitability. Unfortunately, this plan also includes the layoff of employees, who made a big contribution to the company which we appreciate.”
Founded in 2017 by Or Perry, President Doron Nir, CEO Gil Hirsch and CTO Reem Sherman, StreamElements offers an end-to-end platform for livestream and video on demand production. The company monetizes audience engagement, brand sponsorships, and influencer marketing. StreamElements boasts the only full stack of 100% cloud-based tech and business solutions. They have offices in Los Angeles, Palo Alto and Tel Aviv.
