Relocation requests from Israelis working in tech rose during Gaza war — report

Employees at Nvidia Israel. (Courtesy/Nvidia)
Employees at Nvidia Israel. (Courtesy/Nvidia)

Requests to relocate abroad by Israelis working at multinational companies with offices in Israel rose in the past year, amid the two-year war against Hamas in Gaza, a report published today says.

The Israel Advanced Technology Industries Association (IATI) found that 53 percent of companies reported an increase in relocation requests from Israeli employees, noting this was “a trend that may, over time, harm the local innovation engine and Israel’s technological leadership.”

Israel’s tech sector accounts for about 20% of the country’s GDP, 15% of its jobs and more than half of its exports. The hundreds of multinational firms in Israel include Microsoft, Intel, Nvidia, Amazon, Meta and Apple.

In its annual report, IATI also says some multinational companies are examining the transfer of investments and activities to other countries.

“In some cases, companies that faced disruptions in supply chains found alternatives outside Israel during the war, and when these proved efficient, there is a risk that activity will not fully return,” says the report, issued at a meeting led by IATI CEO and president Karin Mayer Rubinstein.

At the same time, it adds, there has been an increase in demand for relocation among senior executives and families, with more employees applying for positions outside Israel.

Still, the report noted that multinational companies view the Israeli tech ecosystem through a long-term lens and many firms have thrived during the war.

Some 57% of companies maintained stable business activities throughout the fighting, and 21% expanded their operations in Israel, “a figure that indicates continued confidence in local activity and the Israeli ecosystem even under conditions of uncertainty,” IATI says.

Another 22% of companies reported damage to business activity during the war.

IATI notes that “without active steps by the state to create regulatory and geopolitical stability, there is concern about gradual erosion in the stability of the local ecosystem.”

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