Foreign Companies Cut 15,000 Jobs in Israel Since War's Start

New data from Israel's Central Bureau of Statistics (CBS) reveals a significant decline in employment at foreign-owned companies operating within the country. Since the outbreak of the war on October 7, 2023, these companies have collectively eliminated approximately 15,000 jobs, representing a 5% decrease in total positions.

In 2022, foreign-controlled companies employed around 303,200 individuals. This figure remained relatively stable in 2023, with approximately 302,800 jobs. However, a downward trend began in 2024, with the number of positions falling to 294,200, and further decreased to 288,100 in 2025.

The CBS defines these companies as Israeli entities with over 50% foreign ownership, often serving as local branches or development centers for multinational corporations. These firms are substantial employers, particularly in the high-tech sector, where they account for nearly half of the workforce. Notably, the proportion of high-tech workers within these foreign-owned companies has remained consistent at around 48-49% throughout the period, indicating that the job losses are not concentrated solely within the tech industry but are spread across various sectors.

Despite the reduction in job numbers, the total compensation paid by these companies has seen an increase, rising from 92.9 billion shekels in 2022 to 102.1 billion shekels in 2025. This suggests a rise in average salaries per position, potentially linked to reports of experienced workers being retained while less experienced ones are let go, possibly due to the integration of artificial intelligence in work processes.