Unicorn Firebolt slashes workforce as AI reshapes operations
Data warehouse company cuts dozens despite holding more than $100m in cash.
Unicorn Firebolt has laid off dozens of employees in Israel and abroad. Following the cuts, only a small team of developers will remain in Israel, alongside a team in the United States.
The company, which raised $100 million at a $1.4 billion valuation during the peak of the tech boom in January 2022, has decided to significantly reduce its workforce. According to market estimates, the move reflects management’s assessment that expanded AI-driven capabilities now reduce the need for a large engineering organization.
Calcalist has learned that Firebolt still holds a substantial cash reserve of more than $100 million. The layoffs are part of a broader strategic shift aimed at improving efficiency and adapting the company to what executives describe as a new technological era.
Last year, Firebolt announced that its two founders, Eldad Farkash and Saar Bitner, would step down from their management roles.
Firebolt has developed a cloud data warehouse platform designed for high-volume data analytics, offering high performance at lower cost compared to competitors. Its architecture separates data storage from compute resources, enabling queries to run at high speed while using minimal cloud infrastructure.
Firebolt raised a $37 million Series A in December 2020, and a $127 million Series B in June of 2021. Alkeon Capital led its $100 million Series C in 2022, with other participants in the round including Sozo Ventures, Glynn Capital, and existing investors Zeev Ventures, Angular Ventures, Dawn Capital, Bessemer Venture Partners.
