Samsung-backed Israeli gaming firm Ludeo lays off half of staff
- ByStartupStory | November 2, 2025
Samsung-backed Israeli gaming firm Ludeo has announced significant layoffs, cutting approximately 50% of its workforce as the company pivots its strategy in response to rapid changes in the global gaming landscape driven by artificial intelligence (AI) technologies. The layoffs affect roughly half of its 50 employees, most of whom are based in Israel, signaling a major downsizing and operational restructuring.
Founded in 2022 by brothers Asaf and Omri Gazit, Ludeo developed an innovative interactive media platform that allows players to share dynamic highlights from their gaming sessions, letting others play recorded game segments without needing to install the full game. Ludeo quickly gained traction and attracted $42 million in funding from an impressive roster of investors, including Corner Ventures, LG Ventures, Samsung, AnD Ventures, Stardom Ventures, and Playtika. The startup has offices in Tel Aviv, the United States, and Europe.
Earlier this year, Ludeo appointed Rob Schonfeld—a veteran of Activision Blizzard—as its first Chief Business Officer, in a bid to strengthen its commercial operations and explore new business avenues. However, the rapid rise of generative AI and shifting user behaviors have prompted the company to reassess its core strategy and operations.
In a statement, Ludeo cited “recent changes in the gaming industry, driven by the rise of AI technologies,” as key reasons for the reorganization and accompanying layoffs. The company indicated the move is part of a broader effort to streamline operations, focus resources, and adapt to an increasingly automated and competitive market.
The layoffs are part of a larger pattern across Israeli and global tech, where companies in gaming and beyond are trimming staff and rethinking business models amid AI’s disruptive impact and challenging macroeconomic conditions.
Despite its downsizing, Ludeo maintains a strong foundation with continued support from its high-profile backers and plans to leverage its proprietary interactive technology for new product offerings aligned with the future of gaming experiences.
In summary, Ludeo’s decision to cut half of its workforce underscores both the volatility facing the global gaming sector and the transformative effect of AI on game development, distribution, and monetization models. The company’s strategic reset aims to position it for long-term sustainability and innovation in a fast-evolving industry.
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