Israeli Startup Lays Off Employees: "95% of the Code is Written by AI"
The Israeli high-tech world continues to change, and this time the news comes from the startup company LSports. The company recently announced the layoff of about 40 employees, representing approximately 20% of its total workforce. This move is generating significant interest in the local industry due to the unique reasons that led to it.
The main reason for the change is the increasing use of artificial intelligence (AI) technology. The company's CEO, Dotan Lazar, explained that currently, about 95% of the company's code is written using AI tools. The new technology allows the company to perform many tasks with greater speed and efficiency, creating less need for manual labor in certain areas.
Aside from technological advancements, the economic situation also played a role in the decision. The dollar exchange rate and changes in the global market are making it difficult for many Israeli companies operating in the international market. The combination of the need for economic efficiency along with the new capabilities of artificial intelligence led the company's management to the conclusion that there was no choice but to reduce the number of employees.
The company's CEO noted that the decision to part ways with employees was very difficult on a personal level. He emphasized that the employees contributed greatly to the startup's success over the years, but the changing business reality necessitates painful adjustments. The case of LSports shows how the technological revolution is beginning to have a direct and significant impact on the Israeli labor market.