Over a billion dollars wiped out in two months: what led to layoffs at the drone company

The Israeli robotics company Xtend is laying off about 10% of its workforce, two months after its IPO on Wall Street. The move comes amid an 80% drop in its stock and the erosion of over a billion dollars in company value, alongside revenues significantly below forecasts.

The Israeli robotics company Xtend (Xtend AI Robotics) is laying off about 10% of its 267 employees, roughly two months after it began trading on Wall Street. The move comes amid a roughly 80% decline in the company's stock since the completion of its merger with the American company JFB, and the erosion of more than a billion dollars in company value, which is now trading at a valuation of $324 million. Xtend, which specializes in security technology, particularly drones, reported preliminary revenues of $24.5-26.5 million for the first three quarters of 2026 — far from the forecasts published ahead of the merger, which projected revenues of $85.6 million for the full year 2026. CEO Aviv Shapira explained in a letter to investors that the company is transitioning from custom client projects to products, and is undergoing a "strategic reorganization" that includes streamlining the cost structure and building a leaner organization. Despite the layoffs, the company reported significant orders, including a $40.5 million order from the U.S. Army for the purchase of 6,000 STRIKER systems.