Israeli Tech Firms Cut Jobs Amid AI Adaptation
Translated & summarized from NEWSru Israel by baba
Two Israeli technology companies, Silk and HoneyBook, have laid off dozens of employees, attributing the job cuts to adaptation to the artificial intelligence era. Silk dismissed over 30 workers, while HoneyBook let go of 35 employees. Both companies have recently secured significant funding and are valued in the hundreds of millions or billions of dollars. The layoffs come as the small business software market faces increased competition and evolving technological demands.
The story in 5 lines · by baba
- Silk and HoneyBook, two Israeli tech firms, have laid off dozens of employees due to AI adaptation.
- Silk dismissed over 30 employees, about a quarter of its R&D staff, after raising $45 million.
- HoneyBook cut 35 jobs, 14% of its workforce, as part of an AI-focused reorganization.
- Both companies have raised substantial funding, with HoneyBook valued at approximately $2 billion.
- The small business software market faces pressure from low-code services and new AI tools.
Two Israeli tech companies have recently laid off dozens of employees, citing the need to adapt to the era of artificial intelligence. Silk, a startup based in Yokneam, reportedly dismissed over 30 workers, with 20 let go early this week and approximately 10 in the preceding weeks. These layoffs represent about a quarter of the company's R&D staff. Silk, which employs around 150 people in Israel and the U.S., primarily affected software testers and developers. The cuts occurred shortly after the company secured $45 million in capital and debt from Avenue Capital and existing investors. Since its founding in 2019, Silk has raised a total of $458 million, according to PitchBook. The company has not commented on the situation.
Separately, HoneyBook, a company providing a software platform for small business management, terminated 35 of its 255 employees, amounting to 14% of its workforce. HoneyBook stated that the layoffs are part of a reorganization to align its structure and processes with the AI era, emphasizing that the decision was made from a position of financial stability. The company has promised enhanced severance packages to those affected. HoneyBook has raised approximately $500 million and is valued at around $2 billion after its latest funding round. The market for small business software is currently facing pressure from low-code coding services like Wix's Base44 and Lovable, as well as client adoption of tools such as Claude Code.
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