OrCam closing glasses department, cutting dozens of jobs in third round of layoffs this year
OrCam closing glasses department, cutting dozens of jobs in third round of layoffs this year
The Israeli startup has decided to focus on its Hear division after the technological progress in image processing by language models has made its Low Vision products largely redundant.
OrCam is closing its reading glasses development activity for the visually impaired and laying off dozens of employees. Founded by Amnon Shashua and Ziv Aviram, the founders of Mobileye, and Elad Serfaty, the CEO, this marks the third round of layoffs for the company this year. In June, the company laid off 100 workers, and three months before that, it laid off 50 workers. After the latest layoffs, the company is set to only have several dozen employees remaining.
The development of generative artificial intelligence technologies that perform functions similar to OrCam's reading device for the blind using smartphones has harmed its bottom line and ultimately resulted in its decision to concentrate on developing hearing aids.
OrCam stated, "The technological progress in image processing by language models makes the need for further development of the Low Vision products unnecessary. Therefore, the focus is shifted in favor of the Hear division, which is entering the marketing and sales phase."
OrCam planned to go public during the COVID-19 pandemic after it approached a revenue rate of $100 million and profitability. In March 2021, it raised $50 million at a valuation of $1.5 billion, aiming for a valuation above $2.5 billion in the IPO. However, these plans have stalled due to the war and the freeze on purchases from Arab countries, which were a significant growth engine for the Israeli company. At its peak, the company employed about 400 workers. It conducted the first round of layoffs at the end of 2022, laying off several dozen workers.
