Brex to Close Israel R&D Center Amid Global Layoffs

Published 24 days ago

Financial technology company Brex is expected to shutter its Research and Development (R&D) center in Israel and lay off its employees or offer them opportunities abroad. This action is part of a broader downsizing process announced by the San Francisco-based fintech unicorn last week.

Brex’s Global Layoffs

Brex, recognized for its integrated services such as credit cards, business cash accounts, spend management, and bill pay software, recently resolved to reduce its global workforce by 20%. This equates to 282 employees out of their total staff. The company’s co-founder and co-CEO, Pedro Franceschi, attributed this decision to a need to streamline operations, allowing for more rapid decision-making and execution.

Brex’s Journey in Israel

The soon-to-be-closed R&D center was established in Israel about two and a half years ago. It came into existence following Brex’s acquisition of Israeli startup Weav for $50 million. The center, which employs approximately 20 people, was built on Weav’s infrastructure and was led by Weav CEO Nadav Lidor. Weav was founded in 2020 by Avikam Agur, Nadav Lidor, and Ambika Acharya.

Brex, valued at $12.3 billion after raising $300 million in a Series D-2 round in January 2022, has been known for its interest in Israeli fintech. The company’s co-founder, Henrique Dubugras, had previously expressed enthusiasm about making more acquisitions in the country and recruiting hundreds of new employees.

However, the current layoffs suggest a change in direction. Despite this, the future of Brex and its ongoing engagement with the Israeli fintech scene remains a point of interest.