This was an eventful week for Israel's tech ecosystem. Three major stories dominated the headlines: Wix's largest-ever layoff round, Intel Israel's dramatic turnaround, and StreamElements' sale talks. Plus, a semiconductor company raised big money, and JFrog delivered a blowout quarter.

Wix cuts 20% in historic downsizing

Wix confirmed yesterday it is laying off roughly 20% of its workforce — between 800 and 1,000 employees — the largest downsizing in the company's history. CEO Avishai Abrahami wrote to staff: "A very meaningful portion of our costs are shekel-denominated, while our revenue is largely dollar-denominated," calling it "structural pressure" on operations.

Abrahami also tied the cuts to the rise of AI, which he described as the biggest change in how companies are built since the 1970s. Wix is creating new roles — Xengineer and Creators — built around AI work models. The stock has lost 49% since the start of the year, part of the broader "SaaSpocalypse" selloff hitting Israeli software companies.

Intel Israel: from $20 to $90

Just a few miles from Wix's headquarters, Intel Israel tells a very different story. Since Lip-Bu Tan took over as CEO, Intel's stock has surged from an all-time low of $20 to over $90 — a record high.

Intel Israel's workforce has shrunk from 12,000 at its peak to roughly 8,000 today, but remaining employees describe a dramatically improved culture. One veteran employee told Globes: "Lip-Bu writes directly to all employees, without filters. Everyone knows where the ship is headed." Tan canceled unnecessary meetings, trimmed management layers, and refocused the company on specific products — including AI server chips, with partnerships signed with Google and Elon Musk.

Similarweb: the end of the Or Offer era

Or Offer announced he will step down as CEO of Similarweb within a year, after nearly 20 years at the helm. The company — now valued at $362 million — has lost 81% of its value since its 2021 IPO. Despite improving financials, AI concerns and the SaaSpocalypse narrative continue weighing on the stock, alongside other Israeli SaaS names. Monday.com is down 46% year-to-date, Wix 49%, and Fiverr 44%.

JFrog jumps 24% on strong results

By contrast, JFrog delivered a strong Q1: revenue of $154 million, up 26% year-over-year, and non-GAAP net profit of $34.2 million. The stock jumped 23.7% in a single day. Analysts believe JFrog has a durable moat — competitive protection against competing AI models. Cantor Fitzgerald rates it Outperform with an $80 target.

Weebit Nano raises $73M

Israeli semiconductor company Weebit Nano completed a total raise of $73 million on the Australian Securities Exchange. The funds will accelerate commercialization of its ReRAM memory technology for the chip industry, targeting AI and automotive applications.

StreamElements in sale talks

StreamElements — a streaming infrastructure startup that raised over $110 million from Softbank, Pitango, Menora Mivtachim, and others — is in talks to sell itself. It started with an employee posting on Discord that the company might shut down. The company later clarified it is "in positive discussions with potential acquirers." Even if a deal materializes, investors are unlikely to see meaningful returns.

Zenity: the next-gen AI security startup

Against the AI disruption backdrop, cybersecurity startup Zenity is thriving. Founded by former Microsoft employees who worked under Wiz's founders, Zenity focuses on AI agent security. It employs about 230 people — 150 in Israel — and generates tens of millions in revenue.

Bottom line

Israeli tech this week paints a complex picture: layoffs at Wix, distress at StreamElements, and sharp valuation drops across SaaS companies — but also a comeback at Intel, strong growth at JFrog, a $73M raise at Weebit Nano, and a booming AI security segment. The ecosystem is going through a painful adjustment to the AI era, but resilience remains the dominant theme.