Alarum cuts workforce after FBI investigation rocks the company
Alarum is laying off approximately 40 employees following an FBI investigation into its subsidiary, NetNut, over allegations of unauthorized use of home computers. The company's market valuation has plummeted significantly since the investigation began.
Why it matters
The incident underscores the legal and financial risks for tech companies operating in the proxy network and data collection space.
The fallout from the FBI investigation into Alarum has reached the company's workforce. Calcalist has learned that around 30 employees were summoned on Sunday to pre-dismissal hearings, while another 10 employees have been placed on unpaid leave as the company responds to the recent developments surrounding its business. Full list of Israeli high-tech layoffs in 2026 Alarum, which provides organizations with internet access and web data collection services, operates a decentralized network and is led by CEO Shachar Daniel. At the end of 2025, the company employed approximately 100 employees, contractors and consultants, almost all of them in Israel, alongside three senior executives. Roughly half of the workforce was employed in sales, with the remainder split between research and development, customer support, and administrative functions. The layoffs mark a sharp reversal for the company, which nearly doubled its workforce during 2025 as it expanded its operations.
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