Kaltura cuts 10% of workforce in third round of layoffs amid profitability push

Kaltura, the corporate video software company, is undergoing another round of layoffs, its third since 2022. The company will cut 10% of its 700-person workforce, or about 70 employees. Of those, 30 are based in Israel.

Full list of Israeli high-tech layoffs in 2025

The company says the layoffs are part of a broader streamlining effort aimed at reducing operating expenses by $8.5 million. It will record a one-time restructuring charge of $700,000 in the third quarter. Despite the cuts, Kaltura noted that its sales and marketing budgets will remain intact and are expected to grow gradually.

In early 2023, Kaltura laid off 11% of its employees and conducted a similar round of cuts in the summer of 2022. Kaltura, which is traded on Wall Street with a current market capitalization of $262 million, has seen its share price drop 22% since the beginning of the year. Since its IPO in 2021, the stock has declined by 85%.

The latest layoffs follow the company’s second-quarter earnings report, which showed revenue increasing to $44.5 million. Non-GAAP gross profit rose to $31.3 million (a 70% margin), while adjusted operating profit surged to $3 million, up from just $0.5 million in the same quarter last year.

“We exceeded the upper end of all our second quarter guidance ranges, delivering record non-GAAP net profit, an adjusted EBITDA profit that matched last quarter’s record high, and strongest second-quarter operating cash flow since 2020,” said Ron Yekutiel, Co-founder, Chairman, President, and CEO of Kaltura. “New bookings increased sequentially and included initial sales of our AI products. We enter the second half of the year with a robust pipeline and continue to project growth in new bookings, supported by deeper customer consolidation around our platform and the growing adoption of our AI-powered offerings.”

Yekutiel added, “We’ve initiated a reorganization plan that includes, among other measures, a workforce reduction of approximately 10%, aimed at realigning our operations to boost efficiency and productivity. These changes are part of a longer-term strategy, already embedded in our plans, to double adjusted EBITDA in 2026 and return to being a ‘Rule of 30’ company by or before 2028 - through a combination of double-digit revenue growth and improved adjusted EBITDA margin.”

During the quarter, the company closed 21 new six-figure deals across a wide range of industries, including technology, banking, financial services, manufacturing, pharma, education, and media. Notably, Kaltura also signed three first-time AI deals for its new products, Content Lab and Genie, early milestones in its AI monetization strategy. The sales backlog for these AI offerings already includes more than 100 qualified opportunities.