Israeli-founded online game developer Playtika Holding Co. is laying off 15 percent of its workforce, or about 500 employees, in a move to cut costs as it transitions from working in large teams to leaner teams that rely on AI and automation.

The gaming firm employs more than 3,000 workers globally, of which more than a third, or 1,273, are based in Israel, including its senior management. Playtika, which also has offices in the United States, said it is “committed to providing severance packages and support” to affected employees.

In a letter to employees, Playtika co-founder and CEO Robert Antokol explained that the company is undergoing a fundamental shift in its operations, which he said was necessary to “remain a leader in a highly competitive mobile games market.”

“For years, we operated with a broad growth mindset, applying similar resourcing models across our portfolio of games,” said Antokol. “The economic reality of our industry has shifted.”

“We........

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