Israel’s Lightricks to split into two companies

GaryPageau
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CTECH by Catalyst reports Israel-based AI imaging unicorn Lightricks, maker of the Facetune app, continues to grapple with major operational changes amid the disruption caused by AI video models. The company is launching another round of layoffs, less than six months after cutting 85 employees, who at the time represented about 15% of its workforce.

Lightricks currently operates two businesses that are expected to be split into two separate companies: The traditional business of its popular photo-editing app Facetune – which generates around $300 million in revenue and is growing at a 20% rate per annum – and a newer video AI division currently operating under the name LTX.

According to the report, the company informed 17% of its employees that they would be laid off, totaling 75 workers. Most of those affected, 55 employees, are based in Israel and work in core software and product development roles. After the current round and previous cuts, Lightricks will employ about 350 people, roughly half its workforce in 2022, before the AI-driven downturn began

For now, Facetune is effectively financing Lightricks’ heavy investment in its AI division. According to co-founder and CEO Zeev Farbman, the company has invested about $150 million in the AI business to date.
As part of the planned split, Farbman will focus solely on LTX, while Asaf Porat, former deputy CEO of Outbrain, which merged with Teads and is traded on Wall Street, will take over Facetune. During the summer, Facetune will also part ways with CFO Shaul Meridor, who recently announced his decision to enter politics by joining Gadi Eisenkot’s “Yashar” party. After the split, Facetune will have about 100 employees, while LTX will employ roughly 250.

 

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Gary Pageau is principal of InfoCircle LLC, continuing his marketing communications career. InfoCircle LLC is a marketing and communications consulting firm, specializing in business-to-business markets. For nearly 25 years, he was with PMA International, serving most recently as Publisher, Content Development and Strategic Initiatives. His primary responsibilities included overseeing the Association’s editorial department, marketing research unit, education and corporate relations department.