Amnon Shashua’s AI firm cuts over 60% of staff after sale talks collapse - ynetnews

AI21 Labs, an Israeli AI company founded by Amnon Shashua, is reducing its workforce from approximately 180 employees to 70, a cut of over 60%. The company announced it will stop selling standalone AI models and instead focus on its Maestro platform for AI agent optimization. The restructuring follows the collapse of acquisition talks with Nebius, a company whose specifics were not detailed in the report.

According to the ynetnews article, AI21 Labs will concentrate its resources on developing Maestro, which aims to optimize AI agents. The decision to eliminate 110 positions and pivot away from model sales represents a significant strategic shift after the failed acquisition negotiations.

The article states that the workforce reduction is substantial and will leave the company with a leaner structure. The focus on Maestro indicates a move away from competing directly in the foundational model market toward a more specialized product. The collapse of talks with Nebius served as the immediate catalyst for the restructuring.