Unicorn Artlist to cut 200 jobs, 40% of workforce, despite surpassing $300 million ARR
Israeli creative-tech company says it is restructuring around an AI-native operating model despite rapid growth.
Israeli creative technology company Artlist is preparing to lay off approximately 200 of its 500 employees. The company announced in April that its annual recurring revenue reached $300 million at the start of 2026.
During 2025, the company hired 120 employees and currently employs about 500 people.
The company was also recently involved in the production of a full-length Hollywood film.
In a statement, Artlist said: "At a time of continued business and technological growth, Artlist has decided to embark on a strategic reorganization and transition to an AI-native operating model. The goal is to adapt the company's organizational structure to the new technological era and transform it into a flatter, faster, and more autonomous organization.
“As part of this process, the company has initiated a review of approximately 200 roles, and affected employees have been invited to hearings in accordance with the required procedures.
“The move is being implemented from a position of financial strength and continued growth, with the company recently surpassing $300 million in ARR and achieving 50% year-over-year growth.
“The company will provide a comprehensive support package and favorable terms to affected employees and thanks them for their contribution to Artlist's success."
Artlist was founded in 2016 by four entrepreneurs, video editors and musicians from Kibbutz Afikim: Ira Belsky, Co-founder and Co-CEO; Itzik Elbaz, Co-founder and Co-CEO, with an extensive technological background; and Eyal Raz and Asaf Eyalon. The company operated for many years as a bootstrapped business until 2020, when it raised $48 million from KKR. It later acquired several companies, including Motion Array and FXhome, significantly expanding its product portfolio.
In a conversation with Calcalist, Belsky, the company's CEO, said: "Our competitors are AI-native, and they have 120 employees, while we have five times more. We are pushing AI deeply into the company. When you remove entire work chains, nothing changes. AI makes certain roles redundant, and you can't compete with companies that were created by AI. That's not a happy thing. We invested a lot in recruiting and nurturing our employees. What matters most to us is the employees who are leaving. The company's economic momentum is not changing. If we want to be around for another 10 years, we need to be much smaller.
"Our competitors operate differently and much faster than we do. What they create in a day takes us two weeks," Belsky added. "We plow the field by hand, while they already have tractors. We were forced to understand the hard way that in our competitive landscape, there are players producing products five times faster than us, even though we have the best employees. The organizational sluggishness that existed in the past is irrelevant today. Everything now happens in a very short time, without the need for huge teams. No matter how we transformed the organization, without flattening it, we were unable to shorten timelines. I am not happy with the outcome or what is happening, but I am proud of our ability to face reality.
"We do not want to be in a situation where, instead of avoiding harm to people, everyone is ultimately harmed. Everyone must move in this direction. Staying in the old working model slows down professional development and limits growth."
