XTEND Cuts 10% of Staff as Shares Plunge 75% Following NYSE Debut
XTEND AI Robotics is laying off 10% of its workforce after its market value dropped 75% to $360 million following its NYSE debut, despite securing a major $40.5 million contract.
XTEND AI Robotics has announced a 10% workforce reduction following a steep 75% decline in its market value since its New York Stock Exchange debut roughly two months ago. The company currently trades at a valuation of $360 million, down significantly from its initial $1.5 billion listing.
The firm went public in September through a reverse merger with the real estate shell company JFB, an arrangement finalized after an initial agreement in February. While the original funding plan targeted $152 million, the private fund investment ultimately yielded $100 million. Of this total, $42 million was received as a SAFE note at the merger's outset in early 2026, with the remaining $60 million expected to be transferred shortly.
Strategic Adjustments Amid Growing Revenue
In a statement regarding the downsizing, company representatives emphasized that the adjustments aim to streamline operational efficiency and focus resources following significant commercial progress. This progress includes a massive $40.5 million contract secured under the U.S. Department of Defense's Drone Dominance program (DDP).
Founded in 2018 by Aviv Shapira, Matteo Shapira, Rubby Liani, and Adir Tubi, XTEND currently employs 267 people, with 60% based in Israel. Financial disclosures indicate the company anticipates generating $25 million in revenue for the first nine months of 2026, alongside an $84 million robotics backlog. However, widening net losses—rising to $11.5 million in the first quarter of 2026 compared to $5.7 million the previous year—have necessitated the current restructuring.
