Israeli Defense-Tech Startups Expand Hiring and Raise Salaries Amid Global Security Shifts

A new report from the recruitment firm GotFriends, obtained by Globes, reveals that while many technology companies worldwide are reducing staff and slowing hiring due to efficiency measures linked to AI adoption, Israeli defense-tech startups are rapidly expanding their workforce. In 2026, job openings in the defense-tech sector increased by 20% compared to the previous year, with salaries rising approximately 8%. This growth contrasts with broader tech industry trends and highlights intensified competition for experienced professionals in software, hardware, cyber, and AI fields.

Key players actively recruiting include Kela Technologies, XTEND, Airis Labs, D-Fend Solutions, and Axon Vision. The sector's expansion is supported by a surge in global investments, totaling about $12.3 billion since early 2026, nearly double last year's figure. Israeli defense-tech firms have raised around $846 million this year, nearing the total raised in 2025. Moreover, about 800 Israeli startups now receive direct procurement orders from the Ministry of Defense, marking a shift from reliance solely on venture capital to generating actual business revenue.

The report attributes this growth to changing global security realities, such as conflicts in Ukraine and the Middle East, which have increased demand for rapidly deployable solutions over long-term projects. Governments and militaries are increasingly turning to startups for focused, quickly implementable technologies. This dynamic accelerates the transition from lab development to battlefield application, allowing companies to refine products swiftly and demonstrate operational effectiveness.

Hiring trends show a renewed emphasis on hardware engineers, including FPGA and VLSI specialists, alongside software developers skilled in Python, Embedded systems, C++, cloud, and AI. Demand also grows for experts in computer vision, sensor fusion, cyber research, reverse engineering, and threat intelligence. Salaries in defense-tech have risen, narrowing the gap with other high-tech sectors like SaaS, fintech, and cyber. Hardware architects earn around 50,000 shekels monthly, algorithm engineers about 47,000, AI and VLSI engineers approximately 45,000, and experienced software developers close to 44,000 shekels.

Beyond compensation, the sector attracts candidates motivated by meaningful work impacting national security. Many startups are founded by reservists and veterans from technological military units who leverage operational experience to address unmet defense needs. This fusion of military insight, engineering expertise, and entrepreneurship fuels innovation in drones, autonomous systems, cyber, and AI, drawing both investment and talent.

Summary: Israeli defense-tech startups are expanding hiring by 20% and raising salaries amid increased global security demands and direct Ministry of Defense procurement, contrasting broader tech layoffs.

Points: - Israeli defense-tech startups increased job openings by 20% and salaries by 8% in 2026. - The sector raised $846 million in Israel and $12.3 billion globally this year. - About 800 Israeli startups receive direct procurement orders from the Ministry of Defense. - Renewed demand for hardware engineers and AI specialists drives hiring. - Salaries now rival those in SaaS, fintech, and cyber sectors. - Many startups are founded by military veterans addressing real operational needs.

Topic: tech israel_relevant: true Entities: {"people":[],"organizations":["GotFriends","Kela Technologies","XTEND","Airis Labs","D-Fend Solutions","Axon Vision","Ministry of Defense"],"places":["Israel","Ukraine","Middle East"]}