Papaya cuts 30 employees as Israeli gaming company restructures
The company cites AI adoption, currency pressures and a changing technology environment as it adjusts its organizational structure.
Israeli gaming company Papaya is restructuring its operations and will lay off approximately 30 employees, as it seeks to adapt its business model to a rapidly changing technology environment.
The company, which employs around 400 people, said the move is intended to create a more focused and efficient organization while allowing it to concentrate resources on areas with the greatest growth potential.
Papaya said the restructuring reflects broader changes affecting technology companies, particularly the rapid adoption of artificial intelligence tools that are changing how teams work, accelerating processes and expanding capabilities.
"The integration of AI into Papaya's operations allows the company to work differently, shorten processes, expand capabilities and perform tasks smarter and faster," the company said.
Beyond technological changes, Papaya said it is also facing a more challenging global business environment, including geopolitical uncertainty and currency fluctuations, particularly the strengthening of the shekel against the dollar.
The company said the employees leaving were "significant partners" in its development and that it would assist them during the transition period.
The restructuring comes three months after Papaya faced a major legal challenge in the United States. A jury in the U.S. District Court for the Southern District of New York found Papaya liable for false advertising and unfair business practices in a lawsuit brought by Skillz Platform.
The jury awarded Skillz $420 million in damages and issued an advisory disgorgement award of $719 million. The final outcome of the case has not yet been determined, with further court proceedings still pending. Papaya has filed motions seeking a retrial, reversal of the jury decision and a significant reduction of the award.
The dispute centered on allegations that Papaya misrepresented the fairness of its skill-based mobile gaming competitions. Skillz alleged that Papaya used bots to simulate players and influence competition outcomes, claims that Papaya has disputed.
Papaya said the current restructuring is not a response to a single event but part of a broader effort to prepare the company for its next stage of growth.
CEO Oriel Bachar said the company needed to "think differently, move quickly and sharpen our focus" in order to continue competing in a changing market.
"We made a strategic decision to adapt the company's structure to the next stage in its development and build a more focused, sharp and effective organization," Bachar said.
The company said it will continue investing in its products, technology and international expansion while adjusting its structure to what it described as a new operating reality for technology companies.
