TLDR: E-commerce unicorn Yotpo is laying off approximately 200 employees, 34% of its global workforce, as part of a strategic shift towards profitability and an ‘AI-first approach.’ The company is discontinuing its Email and SMS marketing operations to focus on core Reviews and Loyalty products, heavily integrating AI-powered solutions.
Yotpo, the Israeli-founded e-commerce unicorn, has announced a significant strategic overhaul, including the layoff of approximately 200 employees, constituting about 34% of its global workforce. This move, reported on August 5, 2025, is part of the company’s transformation into a ‘profitable, product-first company’ with a distinct ‘AI-first approach.’
The layoffs will impact around 80 employees in Israel, with the remaining reductions spread across Yotpo’s offices in Bulgaria, Poland, London, New York, and Australia. As part of this restructuring, Yotpo is discontinuing its Email and SMS marketing operations. The customer base for these services is being sold to U.S. marketing platform Attentive in a deal estimated to be worth tens of millions of dollars. Yotpo plans to integrate Attentive’s offerings into its platform while intensely refocusing on its core products: Reviews and Loyalty.
Tomer Tagrin, Yotpo co-founder and CEO, articulated the company’s new direction, stating, “Today, we have a very clear strategy: a deep focus on our core products – Reviews and Loyalty – and on AI, technology, infrastructure, and every internal process.” He further emphasized the necessity of the changes, remarking, “I truly believe that tomorrow’s companies will be smaller, more focused, and much more AI-based… This is a painful but necessary step and I want to say a deep and heartfelt thank you to the employees who are leaving us.”
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This strategic pivot is underscored by Yotpo’s recent launch of several AI-powered products. These include automated review summaries designed to boost conversion rates, smart sorting tools, and support for translations in over 50 languages. The company has also introduced Reviews Atlas, a new review analytics engine, and is in beta with a new Loyalty Tiers system. Furthermore, Yotpo is fully adapting customer reviews for seamless integration and use within large language models (LLMs).
