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Ukrainian AI startup Reface has announced plans to reduce its workforce by one-third, leaving 60 employees without jobs, according to dev.ua.

In an official LinkedIn post, Reface described the decision as difficult, noting that the company is parting ways with many talented professionals.

"This is a very difficult decision for us, as we are saying goodbye to many talented colleagues who have made invaluable contributions to Reface's transformation from a true face-swapping app to a multi-product AI company. We are sincerely grateful to each and every one of them for their work, energy and dedication," the statement read.

Why the layoffs?

Over the past two years, Reface launched seven new products and expanded its AI solutions. However, some business hypotheses did not meet expectations, and forecasts proved overly optimistic.

"We made this decision to be profitable from January 2025 and to be able to continue investing in creating innovative mobile AI applications that benefit millions of people around the world," the company wrote.

Reface gained fame for its viral face-swapping app for videos and GIFs. Its neural network was trained on millions of publicly available images, and developers claim that all data is deleted from Google Cloud within 24 hours.