Hundreds of workers’ demobilization in Israel during the past week

A wave of workers’ demobilization has been sweeping the technology sector in Israel since the beginning of 2025, which affects strong and profitable companies in this industry. In contrast to the “emergency demobilization” last year, when the war forced companies to reduce the workforce, the sources say that recent demobilization operations are a planned and calculated step. The leading companies choose to reduce the volume of power and simplify it from the position of power, although their cabinets are full, but revenues are at its peak, and the future seems more promising than ever.

Every year, after publishing annual reports, companies begin to create strategic plans for the next year – either they start a very large employment campaign or lay off people to suit work goals for the year.

Up to 13 % of the company’s workforce

One of the most prominent companies that announce workers’ demobilization is the Appsflyer Adtech Company, which has developed a platform for measuring performance and controlling digital campaigns. The company, which is employing about 1,400 people based in Herzelia Beto, has announced hairstyles for about 100 employees, or nearly 7 % of the workforce. “100 employees of a company like Appsflyer is an unusual personality. I don’t remember the demobilization of the workers on this scale,” he notes wax. “In large companies, on the other hand, this is not a very amazing step, change or go” full steam “is a routine thing for them.”

The Appsflyer step comes specifically at a time when the company is successful. Appsflyer became profitable in 2024, showed a positive cash flow for more than two years and achieved its revenue goals. According to reports, Appsflyer generates annual revenues ranging between 300 and 350 million dollars, and is in the process of examining the possible public subscription on the Nasdaq Stock Exchange, with plans to raise about 300 million dollars.

Meanwhile, Moon, an active Moon, one of the most profitable gaming companies in Israel, began a huge layoff of dozens of employees, with industry estimates ranging from 50 and 100 Game Coinmaster, which produces an estimated $ 2 billion of annual revenue. Unlike other companies, Moon did not make a great demobilization during the war, and the current step seems to be aimed at getting rid of the “dead wood” that accumulated in the institution.

Another company announced the demobilization of workers this week, which is the Auto-Tech Company Innoviz, which rejects 9 % of its operating power. The company, which develops laser sensors for vehicles, explains that this step aims to reduce unnecessary development efforts and reduce annual costs by about $ 12 million. This is the second round of workers’ demobilization in Innoviz within a year, with 13 % of employees in the previous round.

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However, the evaluation in the industry is that the current wave actually contains healthy market behavior. “I don’t see it as an important thing as it was a year ago, shortly after the outbreak of the war. This is a healthy step that the market can deal with. As I see the market, it is about to” explode – in the positive sense.

Workers’ layoffs are not unique to Israeli technology companies with many external companies to reduce their size, including technology giants. Meta recently announced that it reaches 5 % of the workforce or 3600 employees, and Google seeks volunteers for early retirement and Salsforce announced plans to give up 10 % of the employees. According to Layoffs.fyi, who has been monitoring the global technology industry, since the beginning of the year, 31 companies worldwide have launched more than 7,000 employees.

It differs from the wave in 2024

The current wave of demobilization reflects a similar trend exactly a year ago. At the beginning of 2024, the Israeli technology industry underwent turmoil when nearly 3,000 employees were demobilized in 17 companies. Among the most demobilized companies at that time: Unity, which acquired Ironsors and Israel and made 25 % of its working power; Orca Security, which applies 15 % of its employees; And Trigo, which develops techniques for the management of independent supermarkets, which also turned away from 15 % of the workforce.

However, unlike the situation today, workers’ layoffs at that time were mainly affected by the uncertainty about the ability to raise funds due to the war, when many companies forced to reduce their working power and become more efficient due to the complex situation in the economy. However, while the 2024 workers’ layoff wave was mainly due to the effects of war and the economic crisis, the current wave reflects more simplification and strategic amendments by companies.

“Large companies like Moon Active and Appsflyer, which has resulted in about 7 % of the workforce, chose to do so for economic efficiency causes in order to increase profit margins. -companies with size still depend on investments Of the investment capital boxes currently face difficulties in collecting capital, forcing them to reduce the rate of burning cash by reducing their workforce. “

Suleiman explains that another factor is the costs of employment in Israel, which many managers consider high compared to other countries, “so at the beginning of the year they chose to transfer their employment to other places, such as India and Eastern Europe. It is also impossible to ignore the anxiety indicator among the executives in Israel Those who pushed many of them to work together after the war was placed. “

It was published by Globes, Israel Business News – En.globles.co.il – on February 6, 2025.

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