Nayax Lays Off 70 Employees Amid Record Growth and Revenue Surge

Strategic Restructuring Despite Financial Highs

Israeli fintech firm Nayax has announced its first significant round of layoffs, cutting 70 positions—55 of which are in Israel—despite experiencing record-breaking profits and a robust jump in revenue. This decision marks a strategic shift in the company’s operational structure, aiming to streamline after years of aggressive expansion and acquisitions.

Nayax, founded in 2005, develops digital payment systems and management solutions for self-service points of sale. Headquartered in Israel and dual-listed on the Tel Aviv and New York stock exchanges, the company has grown to employ over 1,100 people across 11 countries. Around half of the workforce is based in Israel.

The layoffs come on the heels of exceptional financial performance. In 2024, Nayax reported revenue of 1.1 billion shekels (\$328 million), up from 850 million shekels (\$254 million) in 2023. The company’s net loss narrowed significantly to 20.5 million shekels (\$6.1 million), compared to a loss of 58 million shekels (\$17.3 million) the previous year. Furthermore, the first quarter of 2025 delivered a record quarterly profit of 26 million shekels (\$7.8 million).

Despite its strong financial standing and a 60% rise in share price since January on the Tel Aviv Stock Exchange—far outpacing the broader Tel Aviv 125 index’s 28% increase—Nayax cites efficiency and role redundancy due to acquisitions as the primary motivation behind the layoffs. Key acquisitions over the last three years include Weezmo (2021), On Track Innovations (2022), Roseman (April 2024), and VMtechnologia in Brazil (May 2024), all of which have expanded Nayax’s capabilities in the digital payment and self-service sectors.

According to the company, these workforce cuts are part of a broader “responsible expense management” effort. CEO Yair Nechmad, who holds 23% of Nayax shares, and his brother Amir, who owns 19%, appear to be steering the company into leaner, more scalable operations amid a changing fintech landscape.

What Undercode Say:

Nayax’s move highlights a paradox increasingly common in modern tech: layoffs during periods of record growth. While it may seem contradictory at first glance, this strategic recalibration reflects a deeper narrative within fintech—a sector where rapid expansion often leads to internal inefficiencies and duplicated roles, particularly following a spree of acquisitions.

The acquisition of Roseman and VMtechnologia clearly signals Nayax’s ambitions to dominate the self-service payment ecosystem globally. However, integrating acquired companies is a complicated and expensive task. Roles often overlap, technologies require merging, and organizational cultures clash. This round of layoffs likely stems from such post-merger complexities.

Furthermore, public companies—especially those dual-listed—face unique pressure to showcase operational efficiency and financial discipline to investors. With Nayax’s share price surging, leadership may be seizing the moment to reinforce investor confidence by showing they are proactively managing costs and increasing profit margins.

The company’s reduced net losses and record quarterly profits underscore a fundamental turnaround in its financial health. Still, profitability alone isn’t enough. Markets now favor companies that can grow while becoming leaner and more efficient—traits Nayax is evidently aspiring to embody.

Another lens is the regional impact. With 55 of the 70 layoffs occurring in Israel, the company may be subtly shifting its operational gravity toward international markets. This could reflect broader globalization efforts or cost-saving strategies tied to local labor conditions.

Interestingly, the significant stake held by the Nechmad brothers means leadership is directly financially incentivized to optimize the company’s long-term value. This isn’t just a CEO executing a quarterly maneuver; it’s a founder-led team positioning their brainchild for sustainable global scaling.

Yet, this move will not come without scrutiny. Layoffs—even strategic ones—raise internal morale issues, reputational risk, and scrutiny from local regulators, especially in Israel’s tech-heavy economy.

Ultimately, Nayax is making a bold bet: that streamlining now will result in long-term operational agility. Whether this gamble pays off depends on their ability to execute a clean integration of recent acquisitions, retain top talent, and continue their upward financial trajectory without alienating key markets or employees.

🔍 Fact Checker Results:

✅ Nayax’s financial report confirms \$328M in revenue for 2024 and record Q1 2025 profits.
✅ Company cited role overlaps from acquisitions as the primary reason for layoffs.
✅ Public data verifies a 60% share price increase YTD on the Tel Aviv Stock Exchange.

📊 Prediction:

Nayax is likely positioning itself for a major international pivot, possibly gearing up for further expansion into North America and Latin America through its VMtechnologia acquisition. Expect another round of strategic partnerships or even an IPO-related push in the U.S. market by late 2025. If integration succeeds without major internal disruption, Nayax could surpass \$400 million in revenue in 2026 while turning a significant net profit.