Lightricks cuts 15% of workforce while expanding AI team
Jerusalem unicorn lays off 85 employees as it reorganizes around its new AI video model.
Jerusalem unicorn Lightricks is embarking on another round of layoffs, its third in recent years, as part of a sweeping internal reorganization. The company will dismiss 85 employees, roughly 15% of its workforce, with cuts spread across departments. After the layoffs, Lightricks will employ about 465 people, down from nearly 700 at its peak in 2022, on the eve of the tech downturn.
Full list of Israeli high-tech layoffs in 2025
The previous round of layoffs took place just over a year ago, when the company let go of 70 employees. The announcement comes only three days after Lightricks unveiled its new AI video generation model, which allows users to create videos from text prompts. The company says its latest model is significantly cheaper than competing products such as OpenAI’s Sora.
Lightricks emphasized that the move was not driven by financial pressure or cost-cutting, but rather by a desire to reorganize and refocus the business around artificial intelligence. In parallel with the layoffs, the company is hiring 30 new employees for its growing AI division, which will become its largest department.
Under the new structure, Lightricks will operate as two main divisions. The larger will focus on AI development and innovation, including the continued advancement of the company’s LTX video model. The smaller division will oversee the company’s legacy products, such as Facetune, the photo-editing app that first brought Lightricks international recognition.
Despite the structural shift, management will remain unchanged. Co-founder Zeev Farbman will continue as CEO, and Shaul Meridor, former head of the Budget Division at Israel’s Ministry of Finance, will remain CFO.
Related articles:
Founded in 2013, Lightricks was among Israel’s early unicorns. The company has raised $335 million to date, though it has not raised new funding in several years. Lightricks recently reported an annual revenue run rate of $250 million.
In a statement, Lightricks said the reorganization was designed to support its ambition to become a global leader in AI-driven creativity:
"After the successful release of its latest model, LTX-2, Lightricks is undergoing a strategic transformation to expand its B2B operations and solidify its position as a leading global AI company advancing AI-driven video technology.
"To continue strengthening its long-term competitiveness and align the organization with its priority growth areas, the company is restructuring its operations to focus on LTX, our AI platform and technology engine, and Facetune. This includes merging departments and updating its organizational structure.
"These changes are part of a broader effort to position Lightricks for sustained innovation and growth in a rapidly evolving AI landscape, where continuous adaptation and reinvestment in core technologies are essential to stay ahead.
"As part of this process, the company will be parting ways with some employees, making every effort to minimize the impact on them. It will support those affected as they transition to new opportunities. Lightricks will continue hiring for positions directly connected to new business goals."
