XTEND, the Israeli-American drone maker, is laying off about 10% of its workforce roughly two months after it began trading in New York. According to Calcalist, the cuts follow a roughly 75% drop in the stock since its debut at a $1.5 billion valuation. Bizportal puts the decline near 80% and the headcount at about 265, implying about 25 jobs.
XTEND went public through a merger with real estate company JFB, a route that is faster than a traditional IPO but often brings sharp volatility. The company has not issued a statement explaining the cuts.
The layoffs are not for lack of orders. XTEND, which builds small drones and control systems that let one operator run several drones, won a $40.5 million US Army order for 6,000 STRIKER systems under a $1 billion Pentagon program, and supplies the IDF. But reports say losses remain heavy.
XTEND is a reminder that even in defense tech, which investors are keen on right now, the path from big contracts to profitability is long, and markets are impatient with companies that have not got there yet.
