OrCam, led by Amnon Shashua, is once again reducing its workforce. This time the company has cut 100 roles. This decision follows a previous layoff of 50 employees just three months ago, leaving roughly half of the remaining workforce.
The majority of those affected are marketing personnel for the company’s reading glasses for the blind, based in Israel and the USA.
The primary reason cited for these layoffs is a notable decline in sales in Arab countries, some of which lack diplomatic relations with Israel. Given that a significant portion of OrCam’s revenue comes from these regions, the company anticipates these challenges persisting until the end of 2024, which could complicate its planned IPO.
The company is shifting its focus towards sales through distributors and the continued development of hearing systems, signaling a strategic pivot in its operations.
OrCam released a statement explaining that the restructuring is part of an ongoing divisional split between hearing and vision divisions, necessitated by a challenging business landscape. By reducing operating costs, the company aims to streamline its operations, accelerate the path to profitability, and position itself for capital raising when market conditions improve.
OrCam is an Israel-based company that specialises in developing innovative assistive technology devices for individuals who are blind, visually impaired, or have reading difficulties. Their flagship product, the OrCam MyEye, is a wearable device that uses artificial intelligence to provide real-time audio feedback, enabling users to read text, recognise faces, identify objects, and more.
The company has expanded its presence globally, including in India.
