Tech companies in Israel consider relocation amid escalating conflict
Global tech giants such as Microsoft and Google could soon move their offices from Israel to India or countries in eastern Europe or the Middle East, Economic Times reported. As Israel's war with Hamas escalated, industry experts opined that these multinationals could relocate their staff to locations with similar time zones and talent capabilities. Indian companies could shift their bases back home. Foreign tech businesses employ over 100,000 people in Israel, with the sector generating one-fifth of the country's GDP.
Why does this story matter?
Israel houses over 500 international tech firms, including Microsoft, Google, and Meta. Indian companies Tata Consultancy Services (TCS) and Wipro also employ thousands of Israelis. Per industry experts, these companies could activate their contingency plans and relocate their offices if the war continues to spiral. Notably, tech sector employees are among the 360,000 reservists who have been mobilized to battle Hamas and take part in the potential ground invasion of the Gaza Strip.
Potential disruptions in Israel's high-tech industries
Israel's high-tech industries, the country's fastest-growing sector, may face significant disruptions due to the intensifying conflict. Judicial reforms by PM Benjamin Netanyahu earlier this year had already triggered a massive funding crunch in the industry, and the ongoing war is expected to hamper its recovery. Analysts have predicted massive upheavals in the industry as Israel gears up for a complete invasion of the Gaza Strip. Per Reuters, overseas investment is also expected to slow for the upcoming weeks or months.
'Closely monitoring situation': US chipmaker Intel
American chipmaker Intel, which is the single largest foreign private employer in Israel, said that they had initiated measures to safeguard their workforce in Israel. Speaking to Reuters, a spokesperson said, "We are closely monitoring the situation in Israel and taking steps to safeguard and support our workers." The spokesperson declined to say if the production of computer chips has been affected by the situation. Notably, on Monday, the US company's shares fell by 0.5%.
Death toll surpasses 3,000 in Israel-Hamas war
Since Hamas' initial attack on Israel last Saturday, at least 3,000 people have been killed. The toll includes 22 US and 21 Thai citizens. In a televised address, Israeli PM Netanyahu said, "We saw boys and girls bound, who were shot in the head. Men and women burned alive. Young women who were raped and slaughtered. Soldiers who were beheaded." Meanwhile, the Indian government launched Operation Ajay to evacuate Indian citizens from the war-torn country.
