Israeli Cybersecurity Company Skybox Security Shuts Down, Lays Off All Employees

Skybox Security, an Israeli cybersecurity firm, has laid off all of its employees and ceased its operations, marking the end of nearly 23 years in business. The company, which employed an estimated 100 workers in Israel and an additional 200 in the United States, made the difficult decision to shut down after raising approximately $280 million in funding.

The closure has left employees in Israel with uncertainty about their financial future. Staff members were informed that their February salaries would not be paid, and they were directed to contact the National Insurance Institute for further assistance. In contrast, employees based in the United States will receive full compensation and wages.

CEO Mordechai Rosen addressed the company’s employees on Monday, informing them of the company’s decision to close its doors and lay off all workers. A formal announcement was sent to staff, stating that the company was entering its final phase of operations, including liquidation. The process of liquidation involves ceasing operations, selling assets, and using the proceeds to pay off creditors, including employees.

Technology and Business Operations Sold to Tofin

As part of the shutdown, Skybox Security sold its entire portfolio of business operations and technology to Israeli cybersecurity company Tofin. In a statement released on Tofin’s website, the company expressed sympathy for the situation and assured both Skybox employees and customers that they would be supported throughout the transition.

“Tofin is here to help plan your path forward,” the statement read. “We are committed to providing a smooth transition for Skybox customers, ensuring that you continue to have the tools and expertise necessary to secure your networks without disruption. As the most financially stable company in our industry, we are well-positioned for the future, and we are here for the long term.”

Skybox Security was founded in 2002 by Gidi Cohen, Moshe Mayslis, and Eran Reshef. The company developed cutting-edge information security management software designed to analyze network risks and recommend actionable solutions. Its technology was highly regarded for managing complex networks in physical, virtual, cloud, and operational technology (OT) environments.

Skybox attracted significant investment throughout its history, raising $150 million in a major funding round in 2017 led by CVC Growth and Pantheon. In early 2016, American investment firm Providence acquired 75% of the company for $96 million, valuing Skybox at $120 million.

Despite the strong backing and technological innovation, the company has now reached the end of its journey, leaving employees, customers, and stakeholders to navigate the uncertainty surrounding the shutdown.

Skybox’s decision to close its doors marks a significant chapter in Israel’s cybersecurity industry, as the company was once considered a leading player in the market.