Natural Intelligence to Lay Off More Than 30 Employees in Restructuring

Israeli digital advertising company Natural Intelligence is beginning a round of layoffs and restructuring, according to Globes. On Monday afternoon, the company informed more than 30 employees, about 6% to 7% of its workforce, that they were being called to pre-dismissal hearings.

The cuts come as the advertising market is being disrupted by search engines, especially Google and Bing, shifting toward AI-based results and by changes in search algorithms. The move is relatively limited, affecting about 30 to 40 workers out of roughly 450, and is aimed more at efficiency, middle-management reduction and administrative staff than at developers or product teams.

The decision is notable because Natural Intelligence has long been considered profitable and generates hundreds of millions of dollars through its advertising engine, which is a category leader in comparison-shopping sites. The company previously said its 2021 revenue reached $450 million, up from $380 million the year before.

Its biggest expenses are estimated at $200 million to $300 million a year for performance-based Google SEM campaigns, with the rest going to salaries and expensive office rent in the Toha towers. That spending makes it one of Google Israel's largest clients, and it is believed to work closely with Google Israel on keyword advice and ad creative. As AI tools have expanded, the company has shifted more budget to chatbot-based advertising, and it is now considered one of the largest Israeli advertisers on ChatGPT, which has integrated ads into its business model to identify buying intent. Natural Intelligence is also a major Israeli affiliate marketing player, running recommendation sites such as Top10.com that direct users to commercial partners and earn fees based on referrals and conversions.