AI Reshapes Israeli High-Tech Hiring as Software Layoffs Reach 6.6%

A new Israel Innovation Authority and Tzviran survey of 210 high-tech companies employing about 130,000 people found total staffing nearly unchanged in the first half of 2026. Companies hired workers equal to 8% of headcount and laid off 2.8%, while another 4.3% left voluntarily. Software companies recorded a 6.6% layoff rate, compared with 1.1% in hardware and 2.7% in pharma and medical technology. The survey found AI is influencing hiring plans more than completed dismissals, with about 10% of companies saying adoption had already reduced recruitment, up from 3% six months earlier.