Israel's brain drain reaches high-tech sector

Publicly traded Israeli tech companies now employ half their workforce abroad, including a rise in R&D hiring, despite Israel’s historical advantage in local talent

Israel Wullman|
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Some 8,300 high-tech workers have relocated from Israel in the year and a half since the October 7 Hamas massacre and the ensuing war, accounting for 2.1% of the industry’s workforce, according to a survey published Monday by the Employment Service.
The survey also revealed that Israeli tech firms now employ approximately 440,000 people abroad in 2025, compared to 400,000 employed within Israel.
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תמונת נוודים דיגיטליים
תמונת נוודים דיגיטליים
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The data on "long-term relocation" is based on border control records from the Population and Immigration Authority and reflects a trend linked to growing political and security instability.
The findings point to stagnation in high-tech employment since 2022, with an increasing number of workers choosing to relocate. Unlike previous years—when the tech industry consistently outpaced other sectors in growth—this past year saw high-tech expand at a similar rate to the broader economy.
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According to the report, half of the employees at privately held Israeli tech companies are now based abroad, including in Research and Development (R&D), despite R&D traditionally being a stronghold of the Israeli tech sector.
The situation is even more stark in publicly traded Israeli tech firms. Out of 260,000 employees at companies such as Check Point, NICE and Wix, only 60,000 are based in Israel. In addition, 4,500 new hires for R&D positions were made abroad.
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צ'ק פוינט
Check Point offices in Tel Aviv
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The Israel Innovation Authority noted that the high-tech job market has been stagnant since 2022, despite a shortage of approximately 17,000 skilled workers. For the first time in over a decade of steady growth, the number of employees in the industry has dropped by 5,000 this year. Non-technical roles have seen an even steeper decline.
The authority warned that the rise of artificial intelligence is expected to significantly impact employment levels in the sector. It called on the government, private industry and academic institutions to prepare for the changes ahead.
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