Cyber unicorn Axonius cuts 22% of its Israeli development workforce in AI-driven restructuring
The cybersecurity company expects 66 employees to leave globally, including 46 workers summoned to hearings in Israel. CEO Joe Diamond says the engineering organization is being reshaped around a new AI-driven approach to software development.
Cybersecurity unicorn Axonius is preparing to cut 66 jobs, including 46 at its Israeli development center, as the cybersecurity company reshapes its engineering organization around a new AI-driven approach to software development. The planned departures represent approximately 9% of its global workforce of 722 employees. In Israel, where the company employs 207 people, roughly 22% have been summoned to pre-dismissal hearings.
Axonius CEO Joe Diamond said the changes reflect a shift in how the company develops its products, following several months of changes to its software-building process.
"We’ve made changes to our engineering team, as we reshape how we build around a new AI-driven way of working. Over the past several months, we’ve changed how our software gets built and we’re adjusting our structure to match. The changes affect a portion of our global engineering organization, with the greatest impact in Israel. Each person is being notified individually and is being offered support for this transition. We’re grateful for everything they’ve contributed to Axonius," Diamond said.
The restructuring is another significant workforce reduction for Axonius, which has already gone through two rounds of cuts in less than a year. In November 2025, the company laid off approximately 100 employees from a workforce of around 900, representing more than 10% of its staff. In February 2026, it cut another 40 positions, mostly among relatively senior employees in marketing and sales. That round had a more limited impact in Israel, where seven employees were dismissed.
The latest move is different in its concentration on engineering and its particularly heavy impact on Israel. Diamond's explanation points to a change in the way software is being built as AI tools become increasingly integrated into development processes. The company is now adjusting the structure of its engineering organization to reflect that change.
The cuts come despite signs of continued business growth. In May 2026, Axonius announced that it had surpassed $200 million in annual recurring revenue (ARR) in the first quarter of its fiscal 2027, representing 35% year-over-year growth and a doubling of revenue over two years. The company also said it served nearly 1,000 customers worldwide, including more than 100 Fortune 1000 companies.
Axonius was founded in 2017 in New York by Dean Sysman, Ofri Shur and Avidor Bartov, all veterans of elite Israeli military cyber units. Its platform helps organizations identify and manage the devices, applications and other digital assets connected to their corporate networks, identify gaps in security coverage and enforce security policies. The system integrates with more than 300 security and management tools.
The company has also undergone a leadership transition. In February 2026, Sysman stepped down as CEO and moved to the role of executive chairman, with Diamond, previously the company's president, taking over as interim CEO. Diamond was appointed permanent CEO in May.
Axonius has also expanded through acquisitions, most notably its July 2025 purchase of Israeli healthcare cybersecurity company Cynerio. The deal was valued at $180 million, with the potential to reach $250 million if certain milestones were met. The acquisition expanded Axonius's offering into the protection of connected medical devices and healthcare infrastructure.
