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 the dismissal of 620 workers, including 350 Israelis, representing about 20% of its workforce. This recent layoff adds to previous reductions at companies like Wix, which cut around 1,000 jobs, and Artlist with 200 layoffs. Some firms have seen even more drastic cuts, such as AI21 Labs, which let go of 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 employees were laid off in Israel from over 30 companies this year, while BDO's chief economist Chen Herzog estimates the total layoffs exceed 10,000. The Israeli Employment Service reported a historic peak of 16,340 job seekers in the high-tech sector as of May 2026, with projections rising to about 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 up to four years of experience.

Industry insiders 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. A survey by the Innovation Authority and Tzavrin earlier this year found that only 13% of companies cited AI adoption as a reason for layoffs, suggesting other factors also play significant roles.

The Manufacturers Association of Israel revealed that 62% of high-tech companies are currently laying off workers, and 47% are relocating operations abroad. Wix CEO Avishai Abrahami acknowledged the profound changes in company structures since the 1970s programming era and expressed gratitude to employees affected by the cuts. The ongoing trend highlights a challenging period for Israel's high-tech workforce amid technological and economic shifts.