American Express dumps Israel amid surging tech layoffs

Unfortunately, Amex Israel joins a growing list of international companies that have closed Israeli operations.

By Jewish Breaking News

American Express has shuttered its Israeli operations and laid off dozens of employees just two years after acquiring local startup Nipendo for an estimated $15-20 million.

Founded in 2008 and headquartered in Netanya, Nipendo had developed solutions to automate business-to-business payments processes. The company had raised just $12 million to date, with its last funding round being a Series B almost 10 years ago.

Nipendo’s platform allowed businesses to connect, communicate, and automate Procure-to-Pay processes, including accounts payable and receivable.

Rather than replacing existing systems, the technology worked alongside a company’s current payments infrastructure while adding automation capabilities.

Around 100 people worked at Nipendo’s headquarters in Netanya when American Express acquired it in early 2023, making it part of the credit giant’s broader strategy to build what it calls an “end-to-end B2B platform,” according to Calcalist, who first reported on Amex’s exit.

Integration of the startup’s technology moved quickly. In February 2024, about a year after the acquisition, the Israeli company Top Systems, a publicly traded firm listed on the Tel Aviv Stock Exchange, announced it had acquired the company’s Israeli operations for $2 million.

Since Top Systems had already acquired Nipendo’s Israeli customer relationships and supplier networks, those operations continue independently and weren’t affected by American Express’s shutdown.

Unfortunately, Amex Israel joins a growing list of international companies that have closed Israeli operations.

Earlier this month, Intel began extending cuts to its flagship Kiryat Gat manufacturing facility. Over 1,000 Israeli employees have left Intel’s staff of 12,000 as part of the company’s global restructuring efforts.

Despite the challenges, Israel’s tech sector has shown resilience in other areas.

Israel’s tech sector secured over $12 billion in private funding, achieved record M&A activity of $15.8 billion, and drove economic growth, with high-tech GDP rising by 2.2% in 2024 even as the overall economy contracted.