Thousands of Israeli High-Tech Workers Laid Off Amid AI Adoption and Currency Challenges

Since the beginning of 2026, over 10,000 employees in Israel's high-tech sector have been laid off, reflecting a significant wave of job cuts across the industry. On July 22, Monday.com announced layoffs of 620 employees, including 350 Israelis, representing about 20% of its workforce. This latest reduction adds to previous cuts at companies like Wix, which let go of around 1,000 workers, and Artlist with 200 layoffs. Some firms experienced even more drastic cuts, such as AI21 Labs, which dismissed over 60% of its staff, and Hailo, which reduced its workforce by half.

Data from layoffs.fyi indicates that more than 4,800 high-tech workers were laid off in Israel from over 30 companies this year, though BDO's chief economist Chen Herzog estimates the total layoffs exceed 10,000. The Israeli Employment Service reported a historic peak of 16,340 high-tech job seekers in May, with projections reaching nearly 19,700 by August. Notably, the number of job seekers with over eight years of experience surged by 181% since 2023, compared to a 43% increase among those with less than four years of experience.

Industry experts attribute the layoffs to the accelerated adoption of artificial intelligence tools that reduce the need for human labor, alongside the strengthening of the Israeli shekel against the dollar, which raises employment costs for companies earning primarily in dollars. An emergency meeting between high-tech industry leaders and the Finance Ministry revealed that 62% of companies are currently laying off staff, and 47% are relocating operations abroad.

Wix CEO Avishai Abrahami acknowledged the profound changes in company structures due to technological shifts, expressing gratitude to employees affected by the layoffs. However, a survey by the Innovation Authority and Tzabar earlier this year found that only 13% of companies cited AI adoption as a reason for layoffs, suggesting other factors also play significant roles.