Salto, an Israeli software company, has announced layoffs affecting 30 employees, primarily based overseas.

This reduction accounts for about half of the company’s workforce and is part of a restructuring strategy.

Salto, founded by Rami Tamir, Benny Schnaider, and Gil Hoffer, said the reorganization is part of a shift toward cybersecurity.

The company plans to develop a new product under a different brand while continuing to support its existing offerings.

Salto has raised around US$70 million to date, with investments from firms such as Accel, Salesforce Ventures, Lightspeed Venture Partners, and Bessemer Venture Partners.

The company aimed to simplify application configuration processes by offering a standardized textual representation of extracted data.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Salto’s pivot to cybersecurity follows investment trends but faces fierce competition

Salto’s shift to cybersecurity represents a strategic alignment with current market momentum, as cybersecurity attracted significant venture capital in early 2025 and ranked fourth among top concerns for investors 1.

Their timing coincides with a projected growth in cybersecurity budgets, with Gartner reporting that 80% of CIOs plan to increase their cybersecurity spending 2.

However, Salto enters a crowded field where specific cybersecurity segments like zero-trust architecture, AI-enhanced security, and supply chain security are already gaining significant traction 3.

The company faces the challenge of differentiating its offering in a market that saw a 17% increase in disclosed vulnerabilities last year, exceeding 30,000 total vulnerabilities that companies must address 2.

With their $70 million in total funding, Salto will be competing against well-established security vendors and startups alike, many of which have been purpose-built for security rather than pivoting from other domains.

2️⃣ Large-scale layoffs often undermine expected financial benefits

Salto’s decision to lay off 50% of its workforce aligns with common corporate restructuring practices but risks significant hidden costs beyond the immediate payroll savings.