eToro to Cut 7% of Staff Amid AI Integration and Financial Slowdown
Translated & summarized from NEWSru Israel by baba
Israeli investment platform eToro will lay off about 100 employees, or 7% of its staff, with half based in Israel, as part of previously planned reductions. The company cited the integration of AI tools for efficiency and cost savings, noting expected expense reductions in the fourth quarter. This follows a reported 13% year-over-year drop in third-quarter net revenue to $186 million, primarily due to lower cryptocurrency income, though year-to-date profits and assets under management increased.
The story in 6 lines · by baba
- eToro is laying off approximately 100 employees, representing 7% of its workforce.
- About half of the affected employees are based in Israel.
- The company attributes efficiency gains and cost reductions to the integration of AI tools.
- Third-quarter net revenue decreased by 13% to $186 million, with crypto revenue down 53%.
- Despite the quarterly decline, year-to-date net profit reached $150 million.
- eToro announced a $250 million share buyback program.
Israeli investment platform eToro is set to lay off approximately 7% of its workforce, totaling around 100 employees, with roughly half of those affected based in Israel. The company stated that these reductions were planned months ago and are not a direct result of its latest financial performance.
During a conference call following the release of its third-quarter 2026 report, company head Yoni Assia and CFO Meiron Shani highlighted the role of artificial intelligence (AI) in streamlining product development and reducing operational costs, including personnel expenses. Shani indicated that expenses are expected to decrease by over 5% in the fourth quarter due to these AI-driven efficiencies.
The decision comes shortly after eToro reported a slowdown in trading activity, attributed to decreased market volatility. The company's net revenue for the third quarter fell by 13% year-over-year to $186 million, largely driven by a 53% drop in cryptocurrency revenues, which amounted to $26 million.
Despite the quarterly dip, eToro reported positive year-to-date results, with net profit reaching $150 million over the first nine months. The company also saw an 18% increase in accounts, bringing the total to 4.39 million, and its assets under management grew to $20.8 billion. eToro also announced a $250 million share buyback program, and it held $1.2 billion in cash reserves at the end of the third quarter.