Israeli startup Gloat is laying off 20% of its employees, “Globes” has learned. According to sources familiar with the situation, the company is implementing a streamlining process due to losses and a weakening in business activity. The sources say that the the cuts mainly concern employees not assigned to the core of the new products on which the company is trying to focus. The company has about 100 employees, most of them in Israel.
Gloat, which was founded in 2014 has developed an AI-based platform for career management and employee mobility within large organizations, and markets itself as a solution for employee retention and better utilization of human capital, within multinational companies. Clients include large international companies, including Schneider, Goldman Sachs and Spotify, which installed the system for managing internal mobility and workforce planning.
The company’s flagship product was AI Talent Marketplace, an internal job market that allows human resources managers to advertise jobs and projects within the enterprise and locate suitable employees according to abilities, experience and career preferences. The idea is based on the assumption that large organizations have difficulty mapping the existing skills of their employees in real time, and that rapid internal mobility can save recruitment costs and improve talent retention.
Customers have not renewed contracts and Gloat is pivoting
According to sources familiar with the details, in recent years the company has had difficulty expanding its customer base around the flagship product, and some customers have not renewed contracts. Those sources say this situation has hurt revenue and created an operating deficit that has widened. Consequently Gloat is trying to perform a strategic pivot and expand its activities beyond the classic internal labor market, with an emphasis on integrating AI into broader work processes in the organization. The move has included developing new products to help organizations prepare for work with AI tools, map organizational readiness, and implement cross-unit processes.
As part of the change, Gloat is reducing activities that were not considered core to the new products. According to sources, in recent months there has been a significant slowdown in the workload and fewer projects have been launched. However, according to sources, employees laid off have received a severance package and adequate adjustment assistance.
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Gloat’s most recent financing round was in June 2022, when it raised $90 million in a Series D round. No additional funding has been reported since then. The company has raised a total of about $186 million since its inception and employs just over 100 people, following rounds of layoffs in recent years.
From a macroeconomic perspective, the move is part of a wave of such adjustments by enterprise software companies, amid a prolonged slowdown in the tech market and changing priorities among large clients, who demand more focused solutions and rapid proof of business value.
Gloat said, “We are proud that some of the world’s biggest companies use our Talent Marketplace platform to promote talent development and dynamic organizational management. We continue to support the product and invest in its development. At the same time, we clearly hear from our customers that they are asking us to expand these capabilities to the world of AI Agents, as part of their business and technological development – this is the next stage in Gloat’s evolution.
“As part of the move, we are working to become a more streamlined and focused organization by leveraging AI in our internal operations as well. As part of the streamlining process, we were forced to make a difficult decision and say goodbye to some team members. The numbers mentioned are not accurate and the number of employees we let go is lower than the numbers mentioned, and the scope of the cuts is low compared to many other companies in the market. We are aware that these are complex decisions, but they allow us to act in a more focused and efficient manner and invest in areas that will lead the company’s next phase of innovation and growth.”
Published by Globes, Israel business news – en.globes.co.il – on March 2, 2026.
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