Papaya Gaming to lay off about 30 employees in Israel

Israeli gaming company Papaya Gaming will lay off about 30 of its employees in Israel, as part of a strategic move announced by the company on Sunday. The company currently employs about 400 people.

"As part of adjusting the organizational structure, the company will part ways with about 30 employees. The employees who will finish their roles were significant partners in the company's development and achievements, and the company will work to assist them during the transition period," the statement read.

As part of the move, Papaya will concentrate resources on strategic areas of activity with the greatest potential for impact and growth, simplify processes, and adjust team structures to operate with greater speed, flexibility, and efficiency. The company stated that this move reflects changes in how leading technology companies operate today, particularly the accelerated integration of artificial intelligence tools into work processes, which allows for smarter and faster task execution.

Alongside technological changes, the company is affected by a complex global operating environment, geopolitical instability, and exchange rate fluctuations, including the strengthening of the shekel against the dollar. These factors reinforce the importance of precise resource management.

CEO of Papaya, Uriel Bahar, stated:

"Papaya is a growing, strong, and leading company that operates successfully in a competitive and changing global market. To continue to lead, we are required to think differently, move fast, and sharpen the focus. We made a strategic decision to adapt the company's structure to the next stage of its development. This is a difficult decision, which touches talented, professional, and dedicated employees. The move we are making now is intended to ensure that Papaya will continue to grow from a position of strength and be prepared for the coming years."

In April, a jury in the federal court in Manhattan ruled that Papaya is liable for misleading advertising and unfair competition, ordering it to pay damages of 420 million dollars to the American company Skillz. This is one of the highest compensation amounts awarded in the US under the Lanham Act, which regulates trademark and false advertising issues.

In response, Papaya Gaming stated that it is awaiting final court review and a supplementary judgment, which may decide on additional remedies. The company noted they are "confident that justice will be served and will continue to act with transparency and fairness regarding a decision that is not final."