Veev, which develops innovative construction methods is laying off 25% of it's employees


by Ifi Reporter Category:Real Estate Nov 12, 2022

Veev, which develops innovative construction methods, is laying off more than 100 employees from its 400-strong workforce. At the development center in Israel, which employs 100 people, about 20 people will be laid off.
Veev, founded by Ami Abrahami and Amit Heller, has developed capabilities for building modular homes. Veev's working method involves manufacturing complete and closed walls in the factory, so they pre-include systems such as plumbing and electricity. Assembling a house in the field takes about two weeks. The company stated in the past that they have all the necessary approvals to build buildings of up to eight stories using this method, but now the company has decided to focus on building low houses.

The company claims that this decision led to the layoffs of about 30% of the workforce, including engineers and architects. The company has heavy expenses for establishing factories, moving walls, personnel in factories and in the field, raw materials and more. This means that the company is also affected by supply chain problems and commodity price costs.
In March of this year, the company announced that it had raised $400 million, led by a bond fund that invests in growth companies. Investors in the round also included Oren Zeev's Zeev Ventures, LenX, Fifth Wall Climate Tech and JLL Spark Global Ventures, in addition to institutions such as Migdal Insurance Company, Altshuler Shachem and Mor Investment House. In total, the company has raised 600 million dollars to date.
In March, Abrahami claimed that the company has a challenge in adapting the workforce to the new way of thinking. "We employ the same people who define the traditional field. This means that their thinking needs to be changed. Architects are used to designing buildings, not building them. Now they have to think about how a wall is made, how it is assembled and how it is transported. They have to create an additional set of tools for themselves ".
Abrahami set ambitious goals for a rapid increase in manpower. "We want to increase the development center from 110 to 200 employees, and the company as a whole from 300 to 700-800 employees. There are a lot of things that need to change in such companies." Another challenge the company faces is the ability to speed up the production rate of the walls in the factory.
Veev stated in response: "Following a decision to focus the company's efforts on the development of detached housing units, it was decided to reduce the workforce involved in the development of high-rise buildings. This is a difficult decision that the company made, and it was determined after much deliberation with maximum consideration for the company's employees. This strategic decision will bring the company to achieve its business goals. In addition, the company will provide an extension to the rights of the fired employees, and the human resources department is currently engaged in a plan to support the process of finding a new job for these employees."
Abrahami and Heller this year had to say goodbye to another 130 employees, eight of them in Israel, when they closed the company Reali, which they founded together in 2015, Reali dealt in purchase solutions for the real estate sector, and helped buyers manage the purchase process. The company recruited about 100 million dollars since its establishment, among others from Oren Zeev and Dovi Frances. According to her, Abharmi and Heller were forced to close the company due to the slowdown in the American real estate market - and the difficulty of raising money in the market.



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