Amdocs (from website)
The hits keep on coming to Israel Startup Nation. Amdocs, one of its biggest success stories, is laying off 2,000 employees, or about 6.5% of its total workforce. And two Israeli healthcare startups are also floundering. TytoCare, which offers a digital device for the performing of remote medical testing, is letting go of about 10% of its people, 20 employees, and DayTwo, a startup offering nutrition advice to diabetics, is looking at a complete shutdown after raising $83 million.
Calcalist reported that DayTwo is expected to shutter operations as it is down to just a handful of employees.
The company said in a statement, “Like any startup, we constantly adjust our business model and personnel structure accordingly. For instance, our main solution in the U.S. is transitioning to a digital-based approach without dietitians, and we have introduced a new sales channel through distributors. R&D remains in Israel and continues to lead product development and research.”
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DayTwo is an Israeli medtech startup which uses artificial intelligence to sequence the gut microbiome to create precision nutrition-based food prescriptions to balance blood sugar levels after meals. Its solutions are designed to improve the health of people with diabetes and other metabolic diseases.
DayTwo was founded by Marius Nacht (one of the founders of Check Point and an investor in start-ups) together with Lihi Segal (CEO) and Yuval Ofek. The company calls itself a leader in precision medicine with the world’s “largest and highest resolution microbiome discovery platform.” It offers a sustainable path to remission for metabolic disease (diabetes, prediabetes, clinical obesity, non-alcoholic fatty liver disease).
Founded in 2011, TytoCare works with leading health plans and providers to roll out Home Smart Clinic solutions that enable accessible, high-quality primary care from home, with no compromises. The company has raised $155 million. But it is now also suffering from the global financial slowdown.
As TytoCare explained in a statement, “At a time when the financial markets have undergone significant changes, we are compelled to make certain personnel adjustments and bid farewell to some wonderful people. Nevertheless, our company remains committed to pushing technological boundaries in the field of digital home medicine, expanding our customer base, hiring necessary personnel, and revolutionizing medical service practices in Israel and worldwide.”
But Amdocs is the big deal here. The company has had a long track record with success. It was founded in 1982. That makes it 41 years old – not just middle-aged, ancient for the startup world.
Amdocs already let go of 00 employees so far this year so now the total at the halfway point of 2023 will be 2,700 layoffs.
Like other firms suffering problems these days, Amdocs attributes the layoffs to the global financial crisis. The company said in a statement, “Amdocs, like other leading global companies, continually assesses the global macroeconomic conditions and takes appropriate measures to ensure sustained growth. As part of this, we periodically initiate efficiency processes while maintaining investments in areas of growth, in line with our strategic plan.”
