Haya Yogev, a senior career consultant: AI Revolution Raises New Career Uncertainty for Israel's Laid-Off Tech Workers

Israel's technology industry is facing a new wave of career uncertainty as thousands of employees laid off by technology companies and startups reassess their professional futures amid the rapid expansion of artificial intelligence.

According to Haya Yogev, a senior career consultant specializing in professional transitions, approximately 9,500 employees were laid off by Israeli high-tech companies, technology firms and startups during the first half of 2026.

The main occupations affected, according to Yogev, include software developers, quality assurance (QA) professionals, product managers, marketing and marcom specialists, and customer-support employees.

AI is changing how laid-off workers view their future

Yogev says a survey conducted among 100 employees laid off from technology companies during the first half of 2026 found that approximately 30% are questioning whether to remain in the technology sector, largely because they fear additional waves of layoffs as AI adoption accelerates.

The finding reflects a growing concern among technology professionals that artificial intelligence may not only create new jobs but also reduce demand for certain categories of existing roles.

For employees who have spent years building careers in technology, the question is increasingly whether their next job should be another position in the same industry—or the beginning of a completely different professional path.

Most still want to remain in high tech

Despite the uncertainty, Yogev estimates that approximately 65% of those laid off will seek another position in the technology sector, most likely in a role similar to the one they previously held.

Around 20% are expected to consider a complete career change, while a significant number may explore self-employment or independent work.

The figures suggest that, despite concerns about AI and employment, most laid-off technology workers still view the sector as their preferred professional environment.

Senior executives face a particularly difficult job market

The situation is more complicated for experienced managers and senior executives.

According to Yogev, a significant proportion of senior technology professionals laid off in 2026 are finding it difficult to secure positions comparable to their previous jobs in terms of seniority and compensation.

Many may ultimately have to accept lower salaries, reduced benefits, less senior positions or employment at smaller companies.

Yogev estimates that less than half of the technology managers seeking new positions will find jobs at companies offering conditions similar to their previous employment. A somewhat larger group may have to compromise on compensation and employment conditions, while approximately 10% could consider retraining for an entirely different profession.

Financial considerations play a particularly important role for senior technology executives, many of whom have become accustomed to compensation levels significantly above those available in other sectors.

Finding a new technology job may take longer

Historically, laid-off technology workers often found new positions relatively quickly.

Previous estimates suggested that approximately 30% found new employment within one to two months, while around 50% found another position within approximately three months. Others required considerably more time or eventually pursued professional retraining.

Yogev believes the current labor market could lead to significantly longer job searches.

She estimates that workers in highly sought-after technology positions could find new employment within approximately three months. For other technology professionals, the process could take around six months, while senior executives—particularly those in C-level positions—could face searches lasting six months to a year.

The challenge of changing careers without taking a major pay cut

For technology professionals considering retraining, the challenge is not simply identifying a new profession.

The larger question is finding a career that combines professional ability, personal interest and an acceptable level of compensation.

Technology salaries remain substantially higher than those available in many other sectors of the economy. As a result, workers who have spent years in high-paying technology positions may be reluctant to move into professions that offer significantly lower salaries, even if those professions are more stable or personally fulfilling.

Yogev says the question she increasingly encounters among laid-off technology professionals is straightforward: What profession is best suited to me without forcing me to take a major pay cut?

AI may accelerate a broader reassessment of careers

The current wave of layoffs could therefore have implications beyond the immediate employment statistics.

For some workers, the rapid development of AI may encourage a move into professions where human judgment, interpersonal skills and specialized expertise remain difficult to automate. Others may seek entrepreneurial opportunities or combine their technology experience with expertise from entirely different fields.

For the Israeli technology sector, meanwhile, the challenge will be to determine how many of today's displaced workers will ultimately return to the industry, how many will retrain, and how many will leave technology altogether.

As AI continues to reshape the structure of technology companies, the traditional assumption that an experienced technology professional can quickly move from one company to another may be facing its most significant test yet.