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Israeli software firm cuts 15% of staff to focus on AI video

Lightricks, a Jerusalem-based software company, is laying off 85 employees, or about 15% of its workforce, as it reorganizes around its new AI video model.

The cuts span multiple departments and follow a previous round last year that affected 70 staff.

After the layoffs, the company will employ around 465 people, down from nearly 700 in 2022.

The company recently launched an AI video generation tool that creates videos from text prompts and is hiring 30 new staff for its AI division, which will become its largest department.

Lightricks will now operate two main divisions—one focused on AI development, including its LTX video model, and another managing existing products like Facetune.

Founded in 2013, it has raised US$335 million and reports a US$250 million annual revenue run rate.

🔗 Source: Calcalist

🧠 Food for thought

Implications, context, and why it matters.

LTX-2 open-source plan and multimodal sync set it apart, but commercial results are not public

  • Lightricks introduced LTX-2, the latest LTX video model 1. It adds synchronized audio-video generation (producing sound with visuals in lockstep) and 4K fidelity (Ultra HD resolution) 1. It upgrades LTXV 0.9.8 (an earlier pre-release version) by unifying core video generation into one model 1.
  • Open-source release is planned, with full weights (the model’s learned parameters) going to GitHub in late November 2025 1. Developers can fine-tune (adapt a pretrained model to a specific task or dataset) and customize workflows.
  • LTX Studio, the company’s creation platform, offers multiple subscription tiers with usage measured in credits (consumable units that meter generation) 2. Free plans cover personal use only, with a paid plan required for commercial work 2. No published benchmarks against Runway (a commercial AI video platform), Pika (an AI video startup), or Sora (OpenAI’s text-to-video model) are available.
  • Headcount shifts include 30 hires in AI development and a cut of about 15% of the workforce. New funding has not been announced since $335 million raised in prior rounds. The company is reorganizing around the new model.

Data licensors and tooling vendors can serve creators during the move from stock media to AI-made content

  • AI video platforms now seek rights-cleared training data (licensed content permitted for model training) 3. Visual content licensing ranges from $0.01 to $0.25 per image 3, while video footage costs $1–4 per minute based on quality 3.
  • Stock media provider Shutterstock generated $104 million from AI licensing in 2023 and expects $250 million by 2027 3. That trend signals demand from AI companies for licensed visual datasets that reduce copyright risk.
  • Vendors across stock media and rights management platforms (software and services that manage licenses with usage rights) can pitch training-ready datasets to developers fine-tuning LTX-2 1. Mounting legal pressure against unlicensed scraping adds urgency 3.
  • EU AI Act transparency rules for general-purpose models start in August 2025 3. Provenance (source tracking) and attribution (crediting creators) tools will gain relevance across the ecosystem.

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