The escalating conflict between Israel and Hamas has real consequences for companies and startups in Israel.
Key Details
- Up to 50% of staff at some startups mobilized as 360,000 reservists called up.
- Bank Leumi, Israel’s 2nd largest bank, closes branches and implements emergency plans.
- Melisron malls are limiting the number of shoppers for safety.
- Multinational companies like FedEx, UPS, and H&M are grappling with impact.
Why It’s News
With over a third of a million reservists mobilized, Israel’s economy is feeling the pain of conflict. The tech sector, a source of national pride and economic growth, is especially hard hit as young workforces are called up for military service. Some startups report up to half their staff missing.
Major institutions like Bank Leumi, Israel’s second-largest bank, are also affected. The bank has closed some branches and activated emergency business continuity plans to maintain services. Mall operator Melisron is limiting customer capacity in its shopping centers for safety during the conflict.
The New York Times notes that some Israeli-born Americans are returning home to fight, either because they’ve been mobilized or are volunteering. Both sides of the conflict are seeing mobilization.
Beyond Israel’s borders, multinational companies are assessing how the conflict could impact operations. Shipping giants FedEx and UPS paused services to Israel. Retailers H&M and Inditex closed Israel stores temporarily. Oil company Chevron halted operations at a gas platform near Gaza.
Backing Up a Bit
With massive reservist call-ups disrupting business, major banks affected, and international firms feeling the conflict’s ripples, Israeli companies across sectors are bearing the brunt of the country’s clash with Hamas. Both sides are experiencing the economic impacts of conflict.
The country’s thriving tech sector, accounting for nearly 20% of the economy, faces disruption as the military mobilizes reservists. Some startups report up to 50% of staff called up for service, The New York Times says. Meanwhile, central bank Bank Leumi has closed some branches and activated a “business continuity plan,” The Wall Street Journal notes. Mall operator Melisron is limiting shopper capacity in the name of safety.
