Pagaya announces roughly 20% workforce reduction across Israel, U.S. offices

Pagaya Technologies announced a reduction in workforce of approximately 20% of employees across its Israel and U.S. offices, as compared to its headcount as of December 31, 2022. This reduction will enable the company to streamline its operations in the current market environment to achieve its near- to medium-term growth priorities, it said. "Although this was a difficult decision, we believe these changes will allow us to remain agile and growth-focused and continue to deliver strong performance," said Gal Krubiner, co-Founder and CEO of Pagaya. "I would like to express my sincere gratitude to all of the Pagayans impacted by this decision. We would not be where we are today without their dedication and hard work to advance our mission." The company anticipates the workforce reductions will result in annualized savings in compensation and benefits of approximately $30M beginning in 2023. Furthermore, the company expects to incur a one-time severance-related charge of $4M, the majority of which will be realized in the first quarter of 2023. The charges and timing of such charges described above are preliminary estimates based on the company’s current expectations and are subject to a number of assumptions and risks, and actual results may differ materially from such estimates. There is no change to the company’s previously announced guidance for the full-year 2022.