Foreign-Controlled Companies in Israel See Steady Decline in Employment
Employment in foreign-controlled companies in Israel has dropped below 290,000, marking a cumulative loss of about 15,000 jobs since 2023, according to CBS data.
Foreign-controlled companies in Israel have seen a steady decline in employment since the outbreak of the war in October 2023, according to data released by the Central Bureau of Statistics. While job numbers hovered above 300,000 in 2022 and 2023, the figure dropped below 290,000 last year, reflecting a cumulative loss of roughly 15,000 positions over two years.
Employment Trends and High-Tech Share
The CBS data encompasses Israeli companies where foreign residents hold more than 50% of the shares, primarily local branches and R&D centers of multinational tech giants. Despite the drop in overall headcount from 303,200 in 2022 to 288,100 in 2025, the share of high-tech employees within these firms remained stable at around 48% to 49%, indicating that the downsizing was spread relatively evenly across sectors rather than targeting tech exclusively.
Rising Compensation Amid Staff Reductions
"The cumulative compensation for labor in these companies actually rose each year, from 92.9 billion shekels in 2022 to 102.1 billion shekels in 2025."
This growth in total compensation reflects a higher average salary per position. Analysts point to repeated reports of layoffs targeting less experienced personnel in tech firms, alongside the gradual integration of artificial intelligence tools into daily workflows, which has driven up the average output and compensation of remaining workers.
