Israel Tech Firms See Surge in Staff Seeking Relocation Abroad

Israeli workers employed at various multinational companies operating in Israel are continuously submitting requests to relocate abroad, according to a new report published by Reuters.

A report, published on Sunday, December 28, says that the number of reports rose significantly in the past year in reaction to the country’s two-year war against the Palestinian militant group Hamas.

Reuters wrote that the Israel Advanced Technology Industries Association (IATI) found that 53% of companies reported an increase in relocation requests from Israel-based employees. IATI also said that this was a trend that may harm the local innovation engine over time, as well as Israel’s technological leadership.

The country’s tech sector is large, accounting for around 20% of the country’s GDP. Furthermore, it accounts for 15% of its jobs and more than half of Israel’s exports. The nation has hundreds of multinational firms, including industry leaders like Microsoft, Nvidia, Meta, Intel, Amazon, and Apple.

The report went on to say that IATI had found that some multinational firms are examining the transfer of investments and activities to other countries.

Israel’s Tech Sector Proves Its Resilience

The organization’s CEO and President, Karin Mayer Rubinstein, said that in some cases, companies that faced disruptions in supply chains found alternatives outside Israel during the war. When these alternatives proved to be efficient enough, there is a risk that the activity will not return even with the end of the war, which ultimately harms Israel in the long run.

IATI said that there was also a noticeable increase in demand for relocation among senior executives and families. More and more employees are applying for positions outside the country.

Despite this, multinationals still view Israel’s tech ecosystem through a long-term lens, and many companies have managed to thrive, even during the war.

Around 57% of firms managed to ensure stable business activities despite the fighting, with 21% even going as far as to expand their operations in the country. IATI noted that this figure indicates that there is still a lot of confidence in local activity and the Israeli ecosystem, even in times of uncertainty.

The report further noted that 22% of companies reported damage to business activity during the war, which started on October 7, 2023, when Hamas raided Israel, and ended two months ago following a US-led ceasefire deal.

Commenting on this, Rubinstein said that even during the difficult war, the Israeli high-tech industry, including the global companies operating in the country, once again proved its resilience and the ability to lead in innovation and creativity.