Remitly Cuts 110 Jobs in Israel, Shuts Down R&D Centre

Remitly, the Nasdaq-listed digital remittance and financial services company, has cut approximately 110 jobs in Israel and is closing its local research and development hub, more than three years after acquiring Israeli fintech startup Rewire for around $80 million.

The layoffs affect more than half of Remitly’s workforce in Israel, which had numbered roughly 200 people prior to the job cuts. Most of those losing their roles were involved in development, product and marketing functions tied to the company’s engineering operations in the country.

Employees were informed of the decision through a company-wide Zoom call led by executives from Remitly’s U.S. headquarters, according to local reports — a method that underscores how the move was driven by strategic realignment at the global level rather than gradual attrition.

Strategic Shift: From R&D to Business Operations

The decision marks a significant retreat from the engineering footprint Remitly inherited when it acquired Rewire in 2022 — a fintech that originally focused on financial products for migrant workers and cross-border money transfers. At the time of the acquisition, Rewire was seen as a strategic addition to Remitly’s technology and product capabilities.

However, with the closing of the Israel R&D hub, Remitly will now retain only sales and commercial roles locally, shifting technology and product development responsibilities to its other global locations.

Among those departing is Guy Kashtan, founder and CEO of Rewire, who had led the Israeli operations. Sources say he will leave the company as part of the transition.

Company’s Rationale: Streamlining and Focus

In a statement to the press, a Remitly spokesperson said the layoffs and closure are part of an effort to better align global resources with its key growth opportunities, and to reduce operational complexity after fully integrating Rewire technology into its main platform.

The company emphasized that it remains committed to serving the Israeli market, where Remitly continues to offer money transfer and financial service products — particularly for individuals and businesses engaged in cross-border payments.

Remitly also stated that impacted employees would receive support for their transition, though specific details about severance packages or relocation assistance were not publicly disclosed.

Broader Industry Context

Remitly’s move comes amid ongoing reshuffles in the global fintech and tech sectors, where companies are reassessing their international engineering footprints to streamline operations and improve cost efficiency. While the company’s broader mission — enabling low-cost digital remittances for global users — remains unchanged, the closure of the Israeli development centre signals a consolidation of technical resources elsewhere in its network.

The layoffs also reflect ongoing industry pressures on tech and fintech firms to optimise spending, especially in the face of global economic uncertainty and shifting investor expectations around growth vs profitability. (Industry context inferred from broader tech employment trends.)

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