Samsung Next, the innovation arm of South Korean tech giant Samsung, has announced plans to shutter its operations in Israel and relocate its activities abroad, citing the economic downturn caused by the ongoing conflict in Gaza.
The firm, based in Tel Aviv, a prominent tech hub in the region, informed its staff of the decision via email, acknowledging their contributions over nearly a decade. Despite the closure, Samsung Next highlighted its achievements, including investments in 70 companies and Israeli startups.
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The email assured employees that the US office would take over regional clients and investments, with the transition expected to be completed by autumn. The US team will provide support and guidance during this process.
The move comes amidst a challenging period for the Israeli economy, exacerbated by the recent conflict in Gaza. The Boycott, Divestment, Sanctions (BDS) movement, advocating for an embargo on Israel due to human rights concerns, sees Samsung Next’s decision as a reflection of declining confidence in the Israeli economy.
Prior to the conflict, concerns were raised about controversial judicial reforms, with protests from members of the Israeli tech sector. The International Monetary Fund (IMF) warned that these reforms could adversely impact the country’s economic growth.