Riskified cuts staff as struggles continue
The fraud prevention company, once valued at $3.3 billion, is laying off dozens of employees.
Software company Riskified is laying off dozens of employees, including some in Israel. Riskified, which develops software for detecting and preventing fraud in online commerce, is publicly traded on Wall Street with a market value of $930 million.
Founded and led by Eido Gal, Riskified, which employs around 700 people, generates annual revenue of approximately $320 million, but growth has been relatively modest, at a rate of 10% in the last quarter. Unlike many technology companies that have focused on operational efficiency in recent years, Riskified has yet to achieve profitability.
The company has not yet released its full financial results for the fourth quarter of 2024 and is expected to do so in early March. Riskified went public during the 2021 market bubble at a valuation of $3.3 billion through a traditional IPO rather than a SPAC, but its stock has since declined by approximately 80%. While the company has seen some recovery over the past year, its valuation remains far below its IPO price.
Riskified has not yet responded to requests for comment.
