Israeli Firms Innoviz and Proofpoint Both Making Layoffs

Innoviz Technologies’ founding team, which includes CEO Omer Keilaf, CBO Oren Rosenzweig and Chief R&D Officer Oren Buskila.

In a double blow to Israel Startup Nation, Innoviz Technologies, an Israeli provider of high-performance, automotive-grade LiDAR sensors and perception software, is laying off 13% of its workforce. At the same time, Israeli cybersecurity firm Proofpoint is laying off 6% of its workforce, or 280 employees.

Is this related to the ongoing Iron Swords War in Gaza? Probably not.

Israel has been fighting against the terrorist Hamas organization for almost four months now. The war began after Hams’ barbaric surprise attack on October 7 in which more than 1,200 Israelis were brutally murdered. Many of them, including babies, were burned alive

However, recently there have been signs that Israel’s economy recovered from the initial shock of the attack. After plummeting, the Shekel is now stronger than it was on October 6, 2023. And major deals including new investments are being made at a frequent pace.

So, these layoffs are probably more connected to what was going on before the war.

In August a new special public offering of stock saw Innoviz lose 20% of its value.

Founded in 2016 by Israeli Intelligence Corps veterans from Unit 81 Oren Rosenzweig and Omer David Keilaf, Innoviz produces solid-state LiDAR sensors and perception software that enable the mass-production of autonomous vehicles. Its solutions include InnovizPro and InnovizOne which provides 3D sensing for Level 3-Level 5 autonomous driving.

Lidar is a component of Advanced Driver Assistance System (ADAS). Lidar measures distances by illuminating a target with laser light and measuring the reflection with a sensor. Differences in laser return times and wavelengths can then be used to make digital 3-D representations of the target.

The company boasts that its InovizOne is a solid-state LiDAR sensor specifically designed for automakers and robotaxi, shuttle and delivery companies requiring an automotive-grade, mass-producible solution to achieve autonomy. The automotive-grade sensor is purpose-built to be rugged, affordable, reliable, low-power consuming, lightweight, high-performing and seamlessly integrable into Level 3-5 autonomous vehicles to ensure the safety of passengers and pedestrians alike.

In addition to the layoffs, Innoviz expects to reduce its 2024 planned cash outlays by $22-24 million on an annualized basis. Cash savings are expected to begin in the first quarter of 2024 with run rate savings expected to be achieved by the end of the second quarter of 2024, said the company, and Cash costs associated with the strategic actions are expected to be minimal.

Innoviz Co-Founder and CEO Omer Keilaf said, “Innoviz is at an important point in its growth trajectory. The company is in a market capture window that has the potential to determine the market share of the LiDAR industry for the next decade or more. Today’s actions are the result of a thoughtful process to optimize the Company’s cost structure, increase our competitive positioning, and extend our cash runway through the expected remainder of the market capture window. Looking ahead, we remain confident in our ability to achieve our long-term goals and become a market leader in automotive LiDAR.”

As for Proofpoint, which was acquired by private equity giant Thoma Bravo for $12.3 billion in 2021, the company issued a statement about its layoffs saying, “This decision was not taken lightly, and it is deeply rooted in our forward-looking company strategy of aligning our investments and hiring to our strategic priorities, expanding our operational footprint by leveraging a global talent pool, and streamlining our organization with fewer management layers.”