Zencity cuts 20% of the workforce
Zencity, a community insights and analytics platform for state and local governments, has laid off 30 employees, making up about 20% of its total workforce. About 20 of the employees were based in Israel, and the rest are located in the company’s North American offices.
Zencity has raised more than $50 million so far, including $30 million last June from TLV Partners, Vertex Ventures Israel, Salesforce Ventures, M12 Venture Fund of Microsoft, and Canaan Partners Israel. The company has grown rapidly over the past year, including completing two acquisitions in the United States and Canada.
Founded in 2015 by CEO Eyal Feder-Levy and Chief Technology Officer Ido Ivry, Zencity provides municipalities and other local authorities with data-driven insights that enable them to make better decisions with a deeper understanding of their residents’ needs. The company uses artificial intelligence to analyze data aggregated from data generated by residents from sources including social media, mobile apps and city hotlines, and to create actionable insights for mayors, chiefs of municipal departments, and other decision makers. The company serves approximately 300 clients, including four of the five largest cities in the United States, as well as the Israeli municipalities of Tel Aviv, Beersheba, Ramat Gan and Netanya.
“We are making an organizational change and parting ways with really excellent people,” Feder-Levy said. “This is very painful on a human level, but it is the responsible thing to do in order to improve our customers and our mission. We have built something extraordinary at Zencity over the past five years. We are a rapidly growing company that has also expanded significantly, and on a daily basis we impact hundreds of thousands of people. Cities around the world with increasing trust between local municipalities and the population they serve.During the recent period our workforce has grown exponentially under certain market assumptions we have made.The situation in the markets has changed and this requires us to act accordingly and I take responsibility for that.However, We need to remain committed first and foremost to our customers and the residents we serve.Despite parting ways, our commitment to employees remains deep and we will do everything we can to help them transition into their next role easily and safely.I want to take this opportunity to thank everyone for Their great contribution to our success and to the local municipalities we support.”
The company indicated that the organizational change will affect every part of the company, including the management, and that it will qualify the company for continued growth and global expansion after adding clients recently in the United Kingdom, Australia and other countries.