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

While many technology companies globally and in Israel are reducing staff and reorganizing around artificial intelligence, Israel's defense-tech sector is experiencing a hiring boom. A new survey by Israeli recruiting firm GotFriends reveals a 20% increase in new jobs within the defense-tech industry in 2026 compared to the previous year, accompanied by an approximate 8% rise in wages.

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defense-tech startups are aggressively expanding their workforce. The number of new jobs in the defense-tech industry increased 20% in 2026 compared with the same period last year, and wages are climbing by about 8%.

This expansion in defense-tech hiring contrasts sharply with widespread layoffs in other parts of the high-tech industry, often attributed to efficiency measures related to AI adoption and automation. The GotFriends report indicates a notable shift in the employment landscape of Israel's tech industry, with defense-tech startups aggressively seeking new talent.

The growth is fueled by significant investment and government support. Defense-tech companies worldwide have raised approximately $12.3 billion since the start of 2026, nearly double the amount raised in the same period last year. In Israel, these companies have secured about $846 million, nearing the total raised throughout all of 2025. Furthermore, around 800 Israeli startups are now receiving direct procurement orders from the Ministry of Defense, establishing a strong business foundation beyond venture capital.

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the GotFriends report indicates a change in the employment map of Israel's tech industry.

Companies like Kela Technologies, Xtend, Airis Labs, D-Fend Solutions, and Axon Vision are among those actively hiring. This has intensified competition for experienced professionals in software, hardware, cybersecurity, and AI, as defense-tech startups now vie with established software, fintech, and cybersecurity firms for the same talent pool, often offering comparable salaries and benefits.

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defense-tech startups are also competing for the same candidates, offering similar salaries and conditions.