Israeli company OrCam, which develops devices to assist those with visual and hearing impairments, is to halt development of its flagship product for visual aid. The company, which was founded by Mobileye Global Inc. (Nasdaq: MBLY) founders Amnon Shashua and Ziv Aviram, will focus on its development of devices for the hard of hearing. As part of the new focus, dozens of employees will be laid off, according to market sources. The company has 80 employees in Israel, according to IVC.
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Only last month, Orcam dismissed dozens of employees, its second round of layoffs over the past year, In February there were reports that the company planned an organizational change by spinning of its hearing impairment activities into a separate company, which would make OrCam profitable and ripe for an IPO. At the same time as the reports of a spinoff, the company dismissed 50 employees. Also back in 2022, the company shed 16% of its workforce.
OrCam’s visual aid division has been the core activity since the company was founded in 2010. The company focused on the development of spectacles and various visual aids for those with impaired eyesight.
The device developed by OrCam helps, among other things, in reading texts and signs. However, AI giant OpenAI is developing similar technologies that can be used from mobile phones without the need to purchase special visual aids.
OrCam raised $181 million
To date OrCam has raised $181 million from investors including Israeli institutional bodies like Harel, Clal Insurance, Leumi Partners and Meitav Dash as well as tech investment funds like Intel Capital, Aviv Ventures and Big Tech 50.
Looking ahead OrCam will focus on its hearing division called Hear. This division develops, among other things, the Hear application, which allows the hard of hearing to focus with a digital listening device on an individual speaker when attending social events with a lot of background noise.
OrCam said, “The technological progress in image processing by language models makes the need for further development of the Low Vision products redundant. Therefore, the focus has shifted in favor of the Hear division, which is entering the marketing and sales phase.”
Published by Globes, Israel business news – en.globes.co.il – on July 28, 2024.
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