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$205M-backed TytoCare cuts 20% of staff, CEO Gilad to transition to chairman role

$205M-backed TytoCare cuts 20% of staff, CEO Gilad to transition to chairman role

The Israeli startup explains restructuring as part of push to advance FDA-approved AI diagnostics. 

Meir Orbach | 21:24, 17.07.25

TytoCare, which developed a platform for remote medical testing and diagnosis based on a smart home device, is laying off about 35 employees in Israel and the United States, out of its total workforce of 160, Calcalist has learned. This marks the company’s second round of layoffs, following the dismissal of 20 employees in 2023.

Full list of Israeli high-tech layoffs in 2025

TytoCare’s CEO and co-founder, Dedi Gilad, will transition to the role of chairman of the board of directors in the coming months and will focus on formulating long-term growth strategies. Ofer Tzadik, co-founder and current COO, will continue to lead the company’s day-to-day operations.

TytoCare tech. TytoCare tech. TytoCare tech.

The layoffs are part of a broader reorganization aimed at streamlining operations in line with the company’s strategic focus areas, unique AI-driven products.

Since its founding in 2012, TytoCare has raised approximately $205 million from investors including Insight Partners, Qumra Capital, Orbimed, Qualcomm, Cambia, HOOPP, and Clal.

As part of this transition, TytoCare will restructure its organizational and commercial operations and channel more investment into developing advanced multimodal AI-based diagnostic capabilities, leveraging its proprietary databases and collaborations with international partners.

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The company will adjust its sales model so that the Home Smart Clinic product for home use will be distributed mainly in the U.S. through strategic partners, while its TytoClinic solutions for professional settings will continue to be sold directly.

TytoCare will now focus primarily on the U.S. market, which accounts for 70–80% of its business potential, while maintaining its international partnerships. Today, TytoCare supports over 240 healthcare providers and 1.6 million users worldwide.

Over the past two years, the company has secured a series of FDA approvals for its AI-powered diagnostic solutions, especially in the detection and management of lung diseases, and it is advancing additional AI diagnostic capabilities.

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