Fireblocks, one of Israel's best-known fintech companies, is laying off about 7% of its employees. According to reports, that is 60 to 70 people out of about 900, including dozens in Israel. The company called the move a "structural change", said the decision was difficult but necessary, and promised affected employees enhanced severance and support.
The layoffs come in a turbulent week for the company. On Thursday, Axios reported, citing several sources, that payments giant Visa is in advanced talks to buy Fireblocks for about $2.5 billion. Fireblocks quickly denied it: "This is news to us, and not true at present time." A Visa spokesperson said the company does not comment on rumors.
The gap from 2022
If such a deal does happen at the reported price, it would be about 69% below the $8 billion valuation at which Fireblocks raised $550 million in January 2022, at the height of the crypto wave. According to various reports, Coinbase was also mentioned as a possible buyer, but it denied interest.
Fireblocks developed infrastructure for securely storing and transferring digital assets, and in recent years has focused on stablecoins, an area attracting growing interest from banks and payment companies. That may explain Visa's interest: the company is looking for ways to take part in blockchain-based digital payments.
A third round of layoffs
According to reports, this is the company's third round of layoffs in recent years: about 30 employees, or 5% of the workforce, were laid off in February 2023, and another 3% in 2024. If a deal with Visa materializes, it would be Visa's second acquisition in Israel in a few months, after it announced in August that it would buy cybersecurity company BioCatch for $2.4 billion. For now, there is no deal and no official announcement.
