’Israeli’ High-Tech Exodus: 8,300 Workers Left Since Oct. 7

By Staff, Agencies

Around 8,300 workers in the high-tech sector—approximately 2.1% of the total "Israeli" high-tech workforce—have left "Israel" for a year or more between October 7, 2023, and July 2024, the "Israeli" newspaper "Yedioth Ahronoth" reported, citing a report by the "Israel" Innovation Authority.

The report described the situation as "deeply concerning" and indicative of the state of the high-tech sector heading into 2025, according to data released Monday morning by the Innovation Authority.

Additionally, "Israeli" high-tech companies now employ around 440,000 people abroad, compared to just 400,000 inside "Israel".

Based on census and exit data from "Israel", the report stated that the average monthly departure rate stands at 826 individuals, with a peak in October 2023 of 1,207 high-tech workers. The previous high, recorded in August 2023, was 966.

The report highlighted a rising trend of high-tech workers relocating abroad due to the political and security instability in "Israel".

Unlike previous years, when employment growth in the high-tech sector outpaced other sectors, in the past year, it has slowed to match the overall economy.

According to the report, private "Israeli" high-tech companies (such as Waze, Gett, and Sygnia) now employ more than half of their staff—240,000 out of approximately 430,000—outside of "Israel", including research and development employees.

In sectors such as marketing, sales, and customer service, which require language skills and familiarity with foreign markets, about 75% of staff are located outside "Israel".

The situation is "even more alarming" in publicly traded "Israeli" tech firms (such as Check Point, Nice, and Wix), which employ only 60,000 out of their 260,000 workers within "Israel".

In 2024 alone, all "Israeli" high-tech companies hired 4,500 research and development employees and 2,000 sales or marketing staff abroad.

According to the Innovation Authority, employment in the "Israeli" high-tech sector has stagnated since 2022, despite a shortage of 17,000 workers.

For the first time, 2024 saw a net decrease of 5,000 employees in the sector.

Between 2012 and 2022, the share of high-tech workers in the overall workforce grew rapidly, but over the past three years, it has remained steady at around 11.5%, with no significant change.

In 2024, the "Israeli" outlet The Marker reported that a new wave of layoffs in the high-tech sector is imminent, though currently on hold due to the ongoing war.