Lightricks pivot to Gen AI brings layoffs to 12% of workforce

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Israeli video and image editing mobile apps developer Lightricks, developer of the popular Facetune app, is changing its business focus to generative AI at the expense of some of its app operations, which have not met growth targets, according to Globes. As part of the move, Lightricks is laying off 70 employees, representing 12% of its global workforce. At one time, the company was best known for its imaging apps used by influencers like “social media family megastars, Marc, Heidi, Dixie and Charli D’Amelio who took an unnamed investment stake in the company. (If you are over the age of 17 and don’t know who the D’Amelios are, click here.)
Lightricks CEO Zeev Farbman

Two years ago, Lightricks, led by cofounder and CEO Zeev Farbman, dismissed 80 employees. At that time, Lightricks, had 680 employees in its development centers and sales offices around the world.In addition to the layoffs, Lightricks will reduce activity around some end-user apps, such as photo editing app Photoleap and video editing app Videoleap, and will transfer some of the employees to Studio LTX, an AI-based system for the film and television industry. According to the company, it will continue to develop its main app Facetune, and “will work to promote and deepen the capabilities of the AI integrated into the apps.”

According to CTECH, the layoffs will primarily impact the company’s consumer applications (B2C) division, as it shifts its focus to generative artificial intelligence (GenAI) products for enterprises. Simultaneously, the company plans to recruit dozens of new AI experts, with an emphasis on hiring in Israel.
In 2021, the company completed a fundraising round of $130 million at a valuation of $1.9 billion.