If the Corona crisis continues, 57% of companies are expected to make a large-scale layoff • 71% of companies report that they have frozen new hiring processes
Half of the high-tech companies were hit by the Corona crisis
Half of the high-tech companies experienced significant damage from the Corona crisis and the rest were unaffected, or slightly affected by the crisis. This is the result of the Innovation Authority Survey and the IATI (Israeli Advanced Industries Association) survey.
45% of companies reported a significant exit from the crisis - a better figure than 27% reported in the CBS survey published in May. The survey was conducted among 414 high-tech companies in Israel, most of which employ up to 50 employees. 63% deal with more than 25% sales decline.
About a quarter of the companies reported layoffs, and about 14% reported more layoffs than 15% of the company's workforce. This is most evident in software and communications companies (19%) and less pronounced among healthcare companies (about 8% -3%). If the situation persists, 57% of the companies report that they will make a large-scale layoff in the coming six months. Also, as a result of the crisis, 71% of companies reported that they had frozen the hiring process for new employees.
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Comparing the April data to May indicates a moderate change for the worse. The percentage of companies that have been laid off has increased from 17% in the April survey to 25% in the month survey. The rate of companies reducing wages has risen from 33% in the April survey to about 50% now - up from 25% reported in the CBS survey in May.