Alarum cuts workforce after FBI investigation rocks the company
The Israeli company has begun laying off employees after U.S. authorities launched an investigation into subsidiary NetNut, triggering a sharp collapse in its share price.
The fallout from the FBI investigation into Alarum has reached the company's workforce. Calcalist has learned that around 30 employees were summoned on Sunday to pre-dismissal hearings, while another 10 employees have been placed on unpaid leave as the company responds to the recent developments surrounding its business.
Alarum, which provides organizations with internet access and web data collection services, operates a decentralized network and is led by CEO Shachar Daniel. At the end of 2025, the company employed approximately 100 employees, contractors and consultants, almost all of them in Israel, alongside three senior executives. Roughly half of the workforce was employed in sales, with the remainder split between research and development, customer support, and administrative functions.
The layoffs mark a sharp reversal for the company, which nearly doubled its workforce during 2025 as it expanded its operations.
Alarum, which is listed on both the Tel Aviv Stock Exchange and Nasdaq, operates a residential proxy network that allows corporate customers to collect publicly available online data, monitor prices, conduct market research, train AI models and perform other web-based activities.
The company is currently under FBI investigation over allegations that its subsidiary, NetNut, connected users' home computers to its proxy network without their consent. Following the launch of the investigation and the seizure of domains by U.S. authorities, Alarum's shares plunged on both the Tel Aviv Stock Exchange and Nasdaq. The company's market capitalization has fallen to around NIS 50 million, down from approximately NIS 1 billion at its peak in 2024.
Security sources have also alleged a connection between NetNut and software known as "Popa," which is reportedly used to compromise devices. Alarum has denied the allegations and says it is fully cooperating with U.S. law enforcement authorities.
The company has also temporarily suspended data traffic across the affected services while it reviews its infrastructure. Alarum has warned that the suspension is expected to have a material impact on its financial performance and its ability to serve customers, reducing the need for its existing workforce.
