Although fundraising seems to be returning to Israel’s startup sector, workers are struggling to hold on to their jobs, given the rising number of layoffs in the industry.
Intel, which employs 11,000 Israelis, announced global layoffs, which may impact up to 10% of its Israeli workforce.
According to Israel’s Central Bureau of Statistics, there was a 2% decrease in hi-tech jobs in June and a 6% decrease in available program-developing jobs compared to May.
Demand for high-tech workers is 45% lower than two years ago and 61% lower than two and a half years ago.
The layoffs can be blamed on various factors, such as a the war in Gaza, a worldwide economic slump, the rise of AI replacing human tasks and Israeli startups needing to scale down their workforce to remain profitable.
