Israeli video cloud platform Kaltura (Nasdaq: KLTR) has notified the US Securities and Exchange Commission (SEC) that its board of directors has approved a reorganization plan that includes laying off 11% of its workforce and adjusting the company's organizational structure.
In the summer of 2022 Kaltura laid off 10% of its workforce. At the end of 2021 the company had 758 employees so after dismissing nearly 80 employees in July, in these latest layoffs 75 employees will be leaving the company including 39 in Israel. Kaltura said that the latest streamlining plan will save the company $16 million annually.
Kaltura said that the plan will increase the company's efficiency in response to the current macroeconomic environment. The main goal of the plan is to adapt Kaltura to the current conditions of lower demand and a decrease in organizational budgets in the company's market segment, as well as to support Kaltura's growth engines and accelerate a return to profitable growth.
The company expects pre-tax costs of $1 million related to the reorganization plan, and will recognize this amount during the first quarter of 2023. The plan will be completed during the first half of the year.
Kaltura provides video management systems for businesses and organizations (72% of revenue) and media companies. The company was founded in 2006 by CEO Ron Yekutiel, Dr. Shay David, Dr. Michal Tsur and Eran Etam. The company held its IPO in 2021 at $10 per share and a valuation of $1.24 billion. Since then the share price has fallen 82% and today the company has a market cap of $240 million ($1.80 per share).
In the summer Kaltura rejected a bid from US rival Panopto, backed by the K5 investment fund, to buy it for $3 per share at a company valuation of $383 million K5 had already bought a 6.9% stake in Kaltura, which countered the bid with a 'poison pill' plan to thwart the takeover attempt.
Published by Globes, Israel business news - en.globes.co.il - on January 4, 2023.
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