NSO Group, the Israeli cyber intelligence firm behind the Pegasus spyware, has undergone leadership changes. The company’s co-founder, Shalev Hulio, resigned from his role as executive director, marking a shift in the organization’s executive oversight. Although Hulio will remain connected to the company, his duties will be redefined under ongoing restructuring. The mergers and acquisitions division is expanding, adding roughly one hundred positions to support the transition.
The restructuring plan aims to review every facet of the business, with a goal of streamlining operations while maintaining NSO’s standing as a leading high-tech player in cyber intelligence. The focus is on strengthening capabilities and ensuring readiness to work with NATO member states. Yaron Shohat, previously the company’s chief operating officer, has taken interim charge to steer the process as the organization looks for a permanent chief executive officer.
Barriers and complaints
The decision comes amid ongoing legal disputes spanning multiple jurisdictions. The Pegasus controversy first gained widespread attention in July 2021, when disclosures revealed that tens of thousands of phone numbers had been found infected with the spyware, linking NSO to a broad range of surveillance activities. The fallout prompted international scrutiny and leading to policy actions by several countries, including the United States, which imposed stringent restrictions on NSO’s operations, accusing the company of enabling transnational coercion.
NSO has consistently denied any wrongdoing, maintaining that its tools are designed for legitimate, narrow purposes. Nevertheless, concerns persist about how Pegasus and similar technologies have been used by regimes to silence dissidents and monitor political opponents. The company has faced lawsuits and regulatory scrutiny, including accusations from social media platforms about unauthorized access to their services. In some cases, critics have linked NSO’s products to human rights abuses in various regions. The Israeli government has also tightened export controls on cyber technology, reducing the list of eligible buyers from about one hundred to around thirty-seven countries.
These export restrictions compound existing regulatory pressures and the fallout from the Pegasus case. The European Union has flagged concerns about potential compromises of official communications, underscoring the broader risk landscape in which NSO operates. As the company continues its restructuring, it faces the challenge of addressing reputational fallout while pursuing legitimate, responsible uses of its advanced cyber tools.
The leadership changes and regulatory environment together shape NSO’s strategy going forward. The company asserts that its technologies serve legitimate and valuable purposes, and leaders emphasize a commitment to responsible use and compliance with evolving laws. The restructuring aims to rebuild trust, reinforce governance, and sustain the company’s capacity to deliver cutting-edge cyber solutions within the boundaries of international norms and oversight.