Opinion
Israel’s tech layoffs aren't just a crisis, they’re a talent redistribution opportunity
According to Elevation CEO Avi Snir, by redirecting the talent that already exists in Israel toward organizations that need it, this period could become a catalyst for the next phase of growth across the Israeli economy.
Israel’s tech industry is going through another difficult period. More than 16,000 people in the sector are currently looking for work, and for the first time in more than a decade, employment growth in high tech has stalled. Recent layoffs at leading companies, including Monday.com, have reinforced the sense that the industry is facing a prolonged slowdown.
But focusing only on the layoffs misses a critical part of the story.
Israel does not have too many technology professionals. It has too many technology professionals concentrated in too few places.
While thousands of experienced tech workers are looking for their next opportunity, approximately 13,800 positions remain open in the high-tech sector, alongside thousands of technology-related roles in organizations outside it. The demand for technological expertise has not disappeared. It is shifting.
Banks, hospitals, manufacturers, energy companies and government organizations are all undergoing digital transformation and increasingly need professionals with expertise in data, artificial intelligence, automation, information systems and technology management.
This is why the distinction highlighted by the Perlmuter Committee in 2022 - between a “technological occupation” and employment specifically within the high-tech industry - matters more today than ever.
The real challenge facing Israel’s labor market is not an oversupply of talent, but a mismatch between talent and demand.
Traditional organizations need technological professionals, while experienced workers leaving tech companies are often still searching for roles similar to those they held before. At the same time, moving from a technology company to a bank, manufacturer or healthcare organization is still perceived by many as a step backward in their careers.
That perception needs to change.
Employment Service data makes the trend clear. The sharpest increase in job seekers is not among junior employees, but among experienced professionals. The number of job seekers with five to eight years of experience has increased by 138%, while among those with more than eight years of experience, the increase has reached 181%.
These are not professionals who suddenly lack valuable skills. They are experienced workers whose expertise needs to be matched with new areas of demand.
Making that happen requires overcoming two barriers. The first is perception: a technology career does not have to mean working for a startup or a major tech company. Some of the most significant technology challenges - and opportunities to create impact - exist outside the traditional boundaries of high tech.
The second is a targeted skills gap. Many experienced tech professionals already have strong technical capabilities. What they may need is the ability to apply those skills to the specific needs of industries such as finance, healthcare, manufacturing and the public sector.
This requires action from all sides. Traditional companies need to become better at identifying and absorbing technological talent. Government and employment organizations need to create pathways connecting experienced professionals with emerging opportunities. And professionals themselves need to broaden their definition of what a successful technology career can look like.
The implications extend far beyond the tech sector. For years, some of Israel’s strongest technological talent has been concentrated in one part of the economy, while entire industries have struggled to keep pace with digital transformation and productivity.
Israel does not need fewer technology professionals. It needs more organizations that know how to use them.
If we view the current wave of layoffs only as a crisis, we risk missing the opportunity it creates. By redirecting the talent that already exists in Israel toward organizations that need it, this moment could become a catalyst for the next phase of growth across the Israeli economy.
Avi Snir is CEO and Founder of Elevation.
