Microsoft Israel Restructures, Dozens of Employees Face Role Changes or Layoffs

Approximately 50 employees in the Copilot Studio division have been summoned for pre-dismissal hearings. While some of the affected workers face termination, sources indicate that about half, or potentially a majority, are expected to remain with the company by transitioning into alternative roles within Microsoft.

This restructuring follows a leadership transition at the Israeli R&D center, where Ohad Yassin is replacing long-time director Michal Blumenstyk-Broverman. Microsoft employs approximately 3,000 R&D staff across six sites in Israel, including its main campus in Herzliya.

Microsoft stated that it continuously evaluates its business and organizational structure to align with evolving needs and challenges, which requires difficult decisions that directly impact employees. The company pledged to support affected workers with sensitivity and respect during the transition.