Taboola Cuts Around 100 Jobs Amid AI Push

Why It Matters

The layoffs highlight how digital‑advertising firms are reallocating resources to AI, reshaping employment patterns and competitive dynamics. Taboola’s simultaneous hiring underscores confidence that AI‑driven ad solutions will drive future revenue growth.

Key Takeaways

• Taboola cuts ~100 jobs, mainly in Israel.
• DeeperDive AI engine drives restructuring focus.
• Revenue hit $1.9 billion in 2025, profitable.
• Hiring continues for AI‑related positions.
• Integration with Gannett, India Today, BuzzFeed underway.

Pulse Analysis

Taboola, a leading content‑discovery platform, has been riding the wave of generative AI to reinvent its ad‑tech offering. After a strong 2025 fiscal year—$1.9 billion in revenue and a profit margin that surprised analysts—the company is betting that its DeeperDive answer engine will become a cornerstone of its growth strategy. DeeperDive leverages large‑language models to serve contextual, AI‑generated responses across the open web, promising higher engagement for advertisers and a more seamless experience for publishers.

The restructuring centers on reallocating talent toward DeeperDive development and integration. Early adopters such as Gannett, India Today, and BuzzFeed have already embedded the engine into their content pipelines, giving Taboola tangible proof points of market traction. By positioning DeeperDive as a free, ad‑supported service for users and publishers, Taboola aims to create a network effect that attracts more advertisers seeking precise, AI‑driven placements. This approach also opens new monetisation streams, including premium AI‑enhanced ad formats and data‑rich insights for brands.

Industry‑wide, the move mirrors a growing trend where ad‑tech firms trim legacy roles while expanding AI‑focused teams. The dual strategy of layoffs and targeted hiring signals confidence in the long‑term viability of AI‑centric business models, even as the sector grapples with broader economic uncertainty. For investors and competitors, Taboola’s actions suggest that success will increasingly hinge on the ability to scale AI infrastructure quickly, integrate with major publishing networks, and translate algorithmic relevance into measurable revenue growth.