Israeli news sources on Wednesday reported that eBay, the American e-commerce corporation, has announced its decision to withdraw entirely from the Israeli market by early 2026.

The company will shut down its research and development hub in Netanya and lay off over 200 employees.

This follows multiple rounds of global downsizing as part of eBay's broader restructuring effort.

In an official statement, the company said, "As a global corporation, eBay continually assesses its operational framework to align with long-term strategic objectives, ensuring optimal support for its customers and workforce. Following thorough deliberation, we have made the challenging decision to close our Israel office in the first quarter of 2026. We remain fully committed to supporting and guiding our employees through this transition period."

Read more: Israeli high-tech exodus: 8,300 workers left since Oct. 7

"Israel" relies heavily on its tech sector, which contributed over 18% of GDP in 2022. In early 2024, the company slashed approximately 1,000 jobs, about 9% of its workforce, citing broader economic pressures and the need to streamline its operations. 

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"Israel’s" tech sector, responsible for more than 18% of the occupation's GDP in 2022 according to the Israel Innovation Authority, has built a reputation as a global innovation hub. The closure of a high-profile facility such as eBay’s raises concerns about the market's attractiveness to multinationals amid shifting global investment priorities.

Industry analysts see the move as indicative of larger strategic pivots across the tech industry, where firms are reassessing regional commitments in favor of centralized development hubs and reduced overhead.

Economic reckoning

"Israel’s" economy is facing growing instability as the war on Gaza drags on, deepening its fiscal crisis and exposing the long-term costs of occupation and aggression. The Bank of Israel has warned of a slowdown in economic growth and a rising debt burden, while inflation continues to climb.

A ballooning deficit, driven by spiraling military expenditures, has placed immense strain on the state’s ability to provide essential services. International trade relations are also fraying: key economic partners like the EU and Canada are under mounting public pressure to cut ties with "Israel" over its relentless bombardment of Gaza, which has killed tens of thousands and displaced over a million Palestinians.

As human rights organizations intensify calls for accountability, "Israel’s" economic isolation appears increasingly inevitable.

Read more: 'Israel' to hold interest rates as inflation rises amid war on Gaza

The impact is being felt in the tech sector, once celebrated as the heart of the so-called "Startup Nation." While "Israel’s" high-tech industry remains active, cracks are showing. Reports reveal that nearly a quarter of startups have begun relocating staff and operations abroad, citing both security concerns and reputational damage.