Israeli creative technology company Artlist said on Tuesday it is undertaking a strategic reorganization and reviewing about 200 positions, equal to roughly 40% of its 500-person workforce, as it shifts to an AI-focused operating model.
The move comes after the company, based in Kibbutz Afikim in northern Israel, hired 120 employees during 2025.
Artlist said the reorganization is intended to adapt its structure to the AI era and create a flatter, faster and more autonomous organization. Employees whose roles are under review have been summoned to hearings, as required under Israeli labor procedures before layoffs.
The company said it is making the move from a position of financial strength after recently surpassing $300 million in annual recurring revenue and posting 50% year-over-year growth.
Artlist, founded in 2016, initially focused on building a catalog of music for content creators. It has since expanded into video, image, voiceover and production tools and was recently involved in the production of a full-length Hollywood film.
Among its recent products is an AI production platform designed to give creators control over elements such as locations and camera angles without requiring complex prompts, while maintaining visual consistency. The company also offers an AI Toolkit, a unified interface that brings together leading models for creating video, images and voiceovers.
The toolkit includes Artlist Original 1.0, a cinematic image-generation model trained on the company’s exclusive content catalog. The model offers four visual styles for professional productions.
“At a time of continued business and technological growth, Artlist has decided to embark on a strategic reorganization and transition to an AI-native operating model,” the company said in a statement. “The goal is to adapt the company’s organizational structure to the new technological era and transform it into a flatter, faster and more autonomous organization.”
The company said it would provide “a comprehensive support package and favorable terms” to affected employees and thanked them for their contributions.
Artlist was founded by Ira Belsky, co-founder and co-CEO; Itzik Elbaz, co-founder and co-CEO; and Eyal Raz and Asaf Eyalon, all creators, video editors or musicians from Kibbutz Afikim.
The company operated for years without outside funding before raising $48 million from KKR in 2020. It later acquired several companies, including Motion Array and FXhome, significantly expanding its product portfolio.