B2B intelligence company Lusha has become the latest Israeli unicorn to announce layoffs. The company, which provides information to sales people and companies hiring for call centers is firing 10% of its worldwide workforce of 300.
As part of Lusha's platform, when customers enter LinkedIn, the browser automatically locates details based on the company's huge databank. Subscribers can bring the data into their organization's software. An investigation by "Globes" last year raised questions about the sources of the information in Lusha's enormous databank.
Lusha was founded in 2016 by serial entrepreneurs Yoni Tserruya and Assaf Eisenstein and in its initial years worked without any external funding. Last year Tserruya told "Globes" that the company had become profitable within just a few months.
Last year Lusha completed two financing rounds for $40 million from Providence Strategic Growth (PSG) and then $205 million, at a company valuation of $1.5 billion led by PSG and with the participation of Israeli fund ION. As part of its expansion last year, Lusha leased a second floor in the triangular building in Tel Aviv's Azrieli Center.
Lusha said, "Over the past year, Lusha has grown rapidly in revenue and manpower. However, due to the situation in the markets and the economic slowdown, we have taken the difficult decision to take responsible steps that will ensure the continued success of Lusha over time and acquire control over cash flow."
"As part of preparedness for the new situation, we will focus the company on the field of data and additional strategic projects, while we will stop other projects and we will streamline marketing and sales costs in order to continue to grow. Consequently, we are regretfully forced to part from talented employees and we will provide them with an expanded leaving package and support in finding new work to ensure the softest possible landing for them."
Published by Globes, Israel business news - en.globes.co.il - on July 18 2022.
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