Industry Ministry chief: High-tech layoffs reach 4,000

The total cost of these layoffs could reach NIS 12 billion a year.

by Lilach Weissman
January 1, 2009
Globes

Ministry of Industry, Trade and Labor director general Gabriel 
Maimon told the Knesset Economics Committee that 4,000 
high-tech employees have lost their jobs since October, and 
that the number could reach 15,000. He noted that each 
high-tech employee supports 4-6 employees in business 
services sectors. The total cost of these layoffs could reach 
NIS 12 billion a year. 

Economics Committee chairman MK Robert Ilatov (Yisrael 
Beiteinu) said that the government's economic stimulus 
package made not mention of the high-tech industry. 
"Even though we get daily reports of more and more layoffs, 
the plan does not present a sufficient increase in the Chief 
Scientist's R&D budget, and there is no proposal for dealing 
with the funding shortage facing companies." 

Data presented to the Economics Committee showed that 
Israel's high-tech industry grew six-fold over the past decade, 
doubling GDP over this period. High-tech exports amount to 
half of Israel's manufactured exports. High-tech industry 
employs 70,000 people directly, such as engineers, 
programmers, and R&D staff, and 300,000 people indirectly, 
such as subcontractors, lawyers, accountants, catering and 
cleaning staff.