Verbit is undergoing an organizational change involving about 50 layoffs in the U.S. and 30 in Israel, according to Meir Orbach for CTechNews. It will employ a total of 520 employees following the cutback, 50 more than it had when it announced its latest funding round.
The company informed its employees that it will restructure the company into business divisions after reaching an ARR of $100 million. This will allow it to reduce redundant positions created due to the company’s acquisitions and put it in a position to continue its growth.
“We need to act and prepare ourselves to be in the best position to continue to grow and prosper,” stated Verbit CEO and founder Tom Livne in a letter to the company’s employees. “We have experienced a period of hypergrowth, increasing our workforce fivefold over a period of 18 months during which we acquired six companies.”
“Our success, which includes the doubling of our client base, including strategic clients in the different industries we serve, was achieved in different market conditions, and now we need to navigate the company and ensure that we are in the best position to lead it to prosperity and continued success, while we balance between growth and profitability,” he added.
Alon Klomek, the former Chief Business Officer at Cellebrite, has been hired as a VP to lead the organizational change.
The company successfully closed a $250 million Series E at a $2 billion valuation in November of last year and a $157 million Series C last May. It has raised $550M in investments. Founded in 2017 with offices in the U.S., Canada, the UK, and Israel, Verbit has developed an AI-powered real-time transcription and captioning platform, which offers advanced technologies and full integrations into video-focused platforms.
Verbit’s vision is to make an impact through “a technology that fuels a world where all media shared in classrooms, workplaces and online platforms are inclusive.” Their mission is “to provide universities and businesses with the tools they need to make all video and media accessible to all individuals.”
“Businesses and universities are hungrier than ever for new technologies to reinvent their processes, meet consumer needs and position themselves as innovators. While the need to work and learn remotely was exacerbated by the COVID-19 crisis, remote processes are here to stay,” said Livne.
