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This growth occurred despite calls throughout the continent to boycott Israel during its war with Hamas.
By Shula Rosen
Israeli technology companies expanded their workforces across Europe during the past three years, even as hiring inside Israel slowed amid the war with Hamas, according to a new joint study released Tuesday.
This growth occurred despite calls throughout Europe to boycott Israel during its war with Hamas.
The report, compiled by venture capital fund Planven, consulting firm KPMG, and IT Hub Israel, found that Israeli tech firms operating in Europe increased their European headcount by an average of about 5% per year since 2023. The growth came as Israel’s domestic tech employment stalled, ending a decade-long trend of steady expansion.
As of January 2025, 1,686 Israeli tech companies were active in Europe, employing 32,617 people. That figure rose from 30,936 in 2024 and 29,317 in 2023, the study found. The expansion continued despite rising political pressure on Israel in parts of Europe and heightened criticism tied to the war in Gaza.
The United Kingdom ranked first as a destination for Israeli tech activity, hosting 704 companies with a combined workforce of 6,724 employees. Germany followed with 415 companies and 2,131 workers, while Ukraine accounted for 312 firms employing 2,598 people. France, Poland, and Spain also hosted hundreds of Israeli companies, each employing more than 1,400 workers, according to the data.
Planven investor Elle Taitou Spruch said the figures point to Israeli companies deepening their long-term European presence, even during a period of political tension and public criticism. She said Europe offers strong engineering talent, lower employee turnover, and cost advantages compared with Israel and the United States.
The study found that roughly 40% of European-based employees at Israeli tech firms work in research and development roles, with sales and customer service forming the next-largest segment as companies expand their global commercial operations. In Eastern European countries such as Lithuania, Bulgaria, and Romania, Israeli firms have built large service centers employing hundreds of workers, creating concentrated employment hubs.
KPMG partner Dina Pasca-Raz said Europe’s industrial structure and regulatory environment align well with Israel’s strengths in areas such as artificial intelligence, cybersecurity, robotics, and defense-related technologies. She added that many of the Israeli firms operating in Europe are no longer early-stage startups but mature companies with established business models and senior management based locally.
The report defined Israeli tech companies as public or private firms headquartered in Israel with at least 10% of their workforce based domestically. Among the largest employers with European R&D operations are Playtika, Wix, Check Point Software, Verint, CyberArk, and NICE.
While the United States remains a primary expansion target for many Israeli firms, the study concluded that Europe has become a strategic destination offering market access, regulatory stability, and long-term growth opportunities.
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