High-tech firms seen laying off 7,000

73% of high-tech firms in Israel intend to cut their workforce 
by 10-15%, a survey reveals.

by Shmulik Shelah and Yael Gross-Englander
Globes
November 24, 2008

The Israel Association of Electronics and Information Industries (IAEI) 
has published a survey detailing the extent of the projected layoffs in 
the high-tech sector, as pessimism grows about the state of the 
economy in general and the high-tech sector in particular. The figures 
reveal that Israel's high-tech industry is on the verge of an acute crisis 
that could see the loss of 35,000 jobs. 

The survey was conducted among 49 high-tech companies in Israel, 
62% of which employ more than 100 people and 37% of which have 
sales of more than $50 million a year. The survey found that 73% of 
firms intend to cut their workforce by 10-15%. The companies expect 
their revenue to decrease by around 11% in 2009 - meaning $3 billion 
less. 

IAEI chairman Yehuda Zisapel said, "In view of the survey's findings, 
we expect the layoffs to reach 7,000 people who are employed directly 
in high-tech and a further 28,000 in sectors that provide services to 
the industry and depend on it for their income." 

The IAEI estimates that in recent years, the industry grew by 10-15% 
year-on-year and, says Zisapel, similar growth was expected in 2008. 
"Following the exceptional strengthening of the shekel, we expect to 
end 2008 with a 10-15% fall in shekel-denominated income," he added.