NSO Group, which makes Pegasus software for spyware, said its founder Shalev Hulio will be stepping down from the CEO job with immediate effect.
Chief Operating Officer Yaron Shohat will oversee a reorganization of the company before a successor is named.
Around 100 employees will be let go as part of the firm’s reorganization, and Yaron Shohat will lead the company until the board appoints a new CEO.
Tel Aviv, Israel-based surveillance firm has been contending with legal action after allegations that its tools were misused by governments and other agencies to hack mobile phones.
NSO has said its technology is intended to help catch terrorists, paedophiles and hardened criminals and is sold to vetted and legitimate government clients, though it keeps its client list confidential.
“The company’s products remain in high demand with governments and law enforcement agencies because of its cutting-edge technology and proven ability to assist these customers in fighting crime and terror,” Yaron Shohat said in a statement.
“NSO will ensure that the company’s groundbreaking technologies are used for rightful and worthy purposes.”