Israel defense-tech hiring jumps 20% as AI layoffs spread among high-tech sector

A new survey by Israeli recruiting firm GotFriends indicates a significant shift in Israel's tech employment landscape, with defense-tech startups aggressively expanding their workforce while other high-tech sectors experience layoffs due to AI adoption. The number of new jobs in defense-tech increased by 20% in 2026 compared to the previous year, and wages climbed by approximately 8%. This growth is fueled by a global increase in defense-tech investments, with Israeli companies raising about $846 million since the start of the year, nearly matching the total for all of 2025. Additionally, around 800 Israeli startups are now receiving direct procurement orders from the Ministry of Defense, allowing them to test and refine technology in real-world conditions.

"The wars in Ukraine and the Middle East have shown many countries the need for solutions that can be developed and implemented quickly."

The report highlights a resurgence in demand for hardware engineers, alongside software, cybersecurity, and AI experts, as AI-based systems and advanced defense technologies become more prevalent. The salary gap between defense-tech and other tech sectors has narrowed, with defense-tech companies offering competitive compensation packages. Beyond salary, a sense of purpose and the desire to contribute to national security are increasingly motivating candidates to join defense-tech firms, many of which are founded by veterans addressing unmet operational needs.