Layoff wave in Israeli high-tech: LSports parts ways with 40 employees
The Israeli startup LSports, which operates in the sports data sector, announced this week a significant reduction in its workforce. The company is parting ways with approximately 40 employees, representing about 20% of its total staff.
The company's CEO, Dotan Lazar, explained that the difficult decision was made following a combination of economic and technological factors. According to him, fluctuations in the dollar exchange rate and the need for financial efficiency led to the move, but another key factor is the increasing use of artificial intelligence (AI) tools in development processes.
Lazar noted that the use of AI technology has become an inseparable part of the company's daily work. According to the company's data, approximately 95% of the startup's code is currently written with the assistance of AI tools, which allows for faster results with less human manpower.
The CEO expressed regret over the move and emphasized that it was a difficult step for him and the company. "Parting ways with someone who worked for me and for whom I worked is hard," Lazar said, adding that the company will try to assist the laid-off employees in finding new jobs in the industry.
This event reflects a broader trend in the high-tech world, where many companies are re-evaluating their workforce structure in light of the new capabilities offered by artificial intelligence. The combination of business needs and rapid technological advancement continues to impact the Israeli job market.