Israeli High-Tech Crisis: Nearly 10,000 Laid Off

The first half of 2026 will be remembered as one of the darkest periods for the Israeli high-tech sector. According to data revealed by Hayot Yogev, a senior career consultant, approximately 9,500 employees have been laid off from technology companies and startups. The wave of layoffs has spared no department, severely impacting software developers, QA personnel, product managers, and marketing and customer support staff. These figures indicate that the industry's bubble is facing a significant correction.

Beyond the painful loss of income, a new threat looms over employees: the artificial intelligence (AI) revolution. A survey conducted by Yogev shows that about 30% of those laid off are considering leaving the industry entirely due to fears of future layoff waves. While 65% will attempt to return to a similar technological role, about 20% are opting for professional retraining or self-employment to escape job insecurity.

Hayot Yogev, photo by Morag Bitan

The crisis is also hitting the management level hard. Many executives accustomed to high salaries now find themselves in a difficult position. Yogev estimates that less than half of them will succeed in finding a position under identical conditions, while the rest will be forced to compromise significantly on salary or settle for smaller companies. The fear of financial collapse is paralyzing, especially for senior executives (C-level) accustomed to a high standard of living.

If in the past an average high-tech worker found a job within a month, the reality today is much bleaker. For most sought-after employees, it now takes at least three months to find a position, and for others, up to half a year. For the most senior executives, the search may last up to a full year. The dilemma now facing those laid off is how to reinvent themselves without suffering a financial collapse.