Israeli Fitness Tech Startup amp.ai Lays Off 80% of Its Workforce
Israeli startup amp.ai, creator of a smart home gym device, has laid off 80% of its staff, shifting its business focus from B2C to B2B and cutting jobs in Tel Aviv and New York.
Israeli fitness tech startup amp.ai, which developed a smart home gym device utilizing an electric motor for resistance, has laid off approximately 80% of its workforce, leaving only about 20 employees across its offices in New York and Tel Aviv.
Founded with backing from major DraftKings shareholder Shalom McKenzie, who reportedly invested around $50 million of his own capital, amp.ai introduced a wall-mounted or door-mounted device priced at roughly $2,000, complemented by a subscription-based mobile application. The smart fitness system was designed to replace traditional weights and heavy gym equipment by generating up to 50 kilograms of digital resistance and providing real-time spotting assistance.
Waves of Layoffs and Pivot to B2B
Until a few months ago, the company's Israeli development center employed over 100 people focused on hardware and software engineering. The downsizing occurred in two distinct phases, culminating in a second wave of dismissals where dozens of employees received termination notices.
Company representatives defended the restructuring by pointing to a strategic shift from the consumer-facing B2B market to enterprise B2B applications, alongside operational efficiencies achieved through the integration of artificial intelligence tools.
"From its inception, amp was structured to meet the demands of the US B2C market. Now, as part of a business decision to focus on the US B2B market, alongside significant operational streamlining in development, sales, and marketing driven by AI integration, the company is adapting to its new strategic goals."
