About 9,500 employees were laid off by Israeli hi-tech, technology and startup companies during the first half of 2026, according to an analysis by senior career consultant Hayut Yogev.
Software developers, quality assurance engineers, product managers, marketing and communications professionals, and customer support specialists were among those most affected, Yogev said.
A survey conducted during the first half of 2026 among 100 people laid off from hi-tech companies found that the growth of artificial intelligence had prompted about 30% of respondents to question whether they should remain in the industry, amid concerns about further layoffs.
Yogev estimated that about 65% of laid-off employees would seek similar positions within the hi-tech sector, while approximately 20% would attempt to move into an entirely different profession or industry. Some are also expected to pursue self-employment.
Senior employees face a tougher job market
Many senior professionals who lost their jobs in the hi-tech industry have struggled to secure positions matching their previous seniority and compensation. Some may have to accept lower-paying roles or positions at smaller companies.
Yogev estimated that fewer than half of senior managers would find another hi-tech position offering comparable pay and employment conditions. A somewhat smaller share may have to compromise on pay and benefits, while about 10% are expected to pursue a complete career change.
Financial considerations are especially significant for senior hi-tech executives, many of whom had reached particularly high salary levels.
Job searches could take up to a year
Yogev cited previous data indicating that approximately 30% of laid-off hi-tech employees found new work within one to two months, while about half secured a position within approximately three months. The remainder either needed a longer job search or chose to retrain for another profession.
Finding a new position is now likely to take longer, Yogev said. Employees in highly sought-after technology roles may find work within three months, while other professionals could need about six months. For managers, particularly those who held C-level positions, the process could take between six months and a year.
For hi-tech employees considering a career change, identifying a profession that matches their abilities, strengths and interests can be particularly challenging. With salaries in the hi-tech sector generally much higher than in most other industries, many laid-off employees are concerned about finding a suitable career path without accepting a substantial pay cut.