When Betty Sofer was fired from her human resources role at technology company Verbit in August along with 60 other employees, she was surprised. But looking back, she said, there were warning signs. The tech industry has experienced significant turmoil over the past year, and the company has made previous job cuts, including cutting its human resources team in half. Nevertheless, when her turn came, it was a surprise.
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“I was responsible for headhunting people who were laid off and was involved in the hiring and firing process, but I didn't see it coming yet,” Sofer said. “A big part of my role was establishing the procurement infrastructure, and I was the first and only person to do this. Changes in the company led to lower adoption rates. Perhaps that's why we I thought that's why I was spending time on data collections. After it happened, I looked back and realized it. ”
She says, “It felt like the ground was falling out from under me.” But what helps is to understand that there is a rationality, that it is not arbitrary, that there really was no alternative. ”
Mr. Sofer spent two years with the company with a focus on increasing recruitment sources, or proactively locating candidates. “What happened was that because of the direction of the company, there was no longer a need to retain talent because the growth projections were cancelled. There was no longer a need to hire more people, so the recruiting team was laid off; Now my predecessor was fired.'' Managers are the only ones doing this job. ”
When she was laid off five months ago, Sofer received two months' worth of pay in full from her company and then began receiving unemployment benefits. The company also allowed laid-off employees to keep their computers and technology equipment. Overall, Sofer says the process was respectful.
“After a week's rest, I returned to action and was already in the process of signing a contract with another company, but October 7th came. The company I was supposed to join froze the process and I “The search is ongoing. I volunteered at the headquarters of the abducted families. Just a few days ago, despite the difficult conditions of the war, I decided to start conducting interviews again. .I feel that my previous experience gives me an advantage.I have a community of recruiters and “Headhunters and I have previously given workshops and lectures in this field. comes from a positive starting point. One of the important parts of the job search process is telling the world what you're looking for. You can communicate this statement externally by networking. , with friends, to find opportunities,” she says.
HP, SolarEdge, Google, Amazon, SAP, eBay, and Unity are just a few of the companies that have joined the latest wave of layoffs in the tech industry. “Many employers are currently starting the process of reducing staff, but the big wave in the high-tech sector is… had already begun before the war began.” She says this wave is part of a global crisis, which has been exacerbated in Israel by a judicial overhaul and rising interest rates. “In Israel, we have a worse starting point than in other parts of the world. Almost all companies are cutting jobs, as the impact of the war extends beyond high-tech companies,” she says.
The war's shock to the economy halted the downsizing process that had begun in the summer for several months. Most of the current layoffs are to employees who are not essential to a company's core business. The second type of retrenchment that occurs is the relocation of companies or departments overseas. In such cases, as happened with Facebook in mid-2023, the economic impact would be even more severe as funds would also flow out of Israel. Some companies, like Verbit, are shutting down entire divisions, and others, like proptech unicorn Veev, are shutting down completely.
An optimistic reading of the situation would suggest that the current layoffs are actually a sign that the job market is returning to normal. “The Israeli economy is showing some recovery, but it is not yet completely back to normal,” said Liat Ventura Shushan, director of career development at AllJobs. He cited the fighting during the war and the mass mobilization of reservists. and the scope of dismissal.
“Lack of investment and difficulties in long-term planning also affect high-tech companies, from start-ups to tech giants, which continue to cut staff.” However, this experience has taught Shushan that even after a crisis or decline in activity, , states that economic activity is shown to be continuing. “I believe that once the people understand that the war is over, we will see rapid recovery and growth.”
Of course, the global wave of layoffs has nothing to do with the Gaza war, but is influenced by factors such as reduced consumption and new AI technologies and their impact on the job market. “2024 is expected to be remembered as the year of the generative AI revolution, and companies will need to allocate resources in that direction, sometimes at the expense of human capital. This could lead to further job cuts. “There's a lot of gender,” says career consultant Maya Bushnik. He also coaches Dolsim, Illinois.
She said Israel is likely to see another wave of layoffs on top of those carried over from last year. “Retrenchments, which were planned in advance during the post-holiday period and were delayed due to the war, are likely to take effect in the near future.In fact, in recent days there have been reports of job cuts in certain companies In some cases, these are plans that have not yet been implemented, but are expected in the coming weeks,” she says.
Despite the global wave and local wars, today's numbers do not reflect a deep crisis, as was the case with the major crises of the 2000s and 2008. “We're excited to be able to provide training to technology professionals,” said Chaim Geron, CEO of Infinity Labs, which provides training to technology professionals.
About 6,500 workers were laid off in Israel last year, and about 1,000 workers have been let go from an industry of 400,000 people since the beginning of this year. “In previous crises, 90% of people made it through the crisis. We are not at that level now and as of today, 98% of the industry's employees are still working. There is very little unemployment because people are finding new jobs ”very quickly. “
According to him, the crisis in the technology industry is not as serious as people think. Additionally, there are roles that will always be in demand, such as cybersecurity and AI experts. “Such experts are in short supply, and advanced development experts are a rarity for companies.Additionally, the fact that there are still many reservists and university research is lagging behind increases the demand for employees. ” he says.
Roles that are typically not affected by layoffs are those associated with employees who are generally core to the company and develop the company's products. The people who create the algorithms and code and are responsible for the advancement of the product are usually not fired because the company cannot function without them. Some industries, such as the defense and security industries, are less affected in times of war.
“Companies such as Rafael, Israel Aerospace Industries, and Elbit are at their peak in orders and will need a lot of skilled talent in the long run, which means that those who were laid off will be transferred to these growing companies. There is a possibility of finding a job and therefore the market continues to move forward,” he says.
There must be a reason for the dismissal.
Two weeks ago, British woman Brittany Pietsch posted a TikTok video that has been viewed almost 3 million times. In the video, she was filmed being fired from Cloudflare, where she was an account executive. In the video, she asks her human resources representative the reason for that decision. In contrast to the United States, in Israel you cannot fire someone on the spot without cause. There are laws to protect employees, requiring employers to conduct hearings before firing employees, even in the case of an entire department closure or layoff.
“There is an increasing obligation to conduct hearings, especially when it comes to large-scale retrenchments. If companies choose to operate according to a 'first in, first out' principle, companies with the least seniority are laid off first. If this is the case, there is no need to add additional considerations for layoffs. However, if the layoff is not done according to this principle, then the layoff should be based on dissatisfaction, unmet goals, etc. If she claims to have achieved her goals, the employer will need to explain why it chose that particular employee over another,” Argovschenhaf says.
She said even if the entire company were to be shut down, a hearing would need to be held to ensure there were no legal impediments to termination. The hearing process is more than just a formality; its true purpose is to give the employee and employer a second chance to reconsider their decision. Not all employees called to a hearing will ultimately be fired.
Beyond the legal aspects, the way a company chooses to implement downsizing or downsizing also impacts employer branding and its ability to retain existing employees. When Israeli employees at global companies hear that layoffs are coming, they are likely to pre-emptively leave their jobs before the wave of layoffs hits.
“As soon as the layoff process begins, the first thing to do is to create transparency within the company about the situation, make sure that the best employees feel protected, and are treated with respect that takes into account the interests and interests of the company. “We recommend conducting the hearing process in a way that builds interest, morale, and the ability to retain the remaining employees, which is critical in times like these. There is no sense that the ship is sinking. “This can lead to the departure of top talent,” she says.
