REPORTED by Calcalist and Globes on 12 October 2026. The figure of about 50 employees and the estimate that about half will stay are Calcalist’s. The final number of job losses is not known, and Microsoft’s statement gives no numbers.
Microsoft’s research and development (R&D) centre in Israel has called dozens of employees to pre-dismissal hearings as part of a global organisational restructuring, Calcalist reported [1]. In Israel, a pre-dismissal hearing is a meeting held before an employer decides whether to dismiss someone.
What has been reported
- Calcalist says the move affects about 50 employees on the Copilot Studio team, and estimates that about half will stay in other roles at the centre [1].
- Globes, citing sources, says the Copilot Studio group in Israel employs dozens of people; most will stay with Microsoft in other jobs, and some will be laid off [2].
- Copilot Studio is Microsoft’s platform for building AI agents that carry out business tasks [1][2].
Microsoft employs about 3,000 people at its Israeli R&D centre, according to Calcalist [1].
Leadership change
The changes come as the centre’s leadership changes. Michal Braverman-Blumenstyk, who has led the Israeli R&D centre for six and a half years, is stepping down, and Ohad Jassin is expected to take over in November, Calcalist reported [1].
What Microsoft says
Microsoft describes the changes as restructuring. A spokesperson told Calcalist: “We continue to evaluate the company’s operations and organizational structure to align them with changing needs and challenges. This process involves changes to team structures and, in some instances, difficult decisions that directly impact our employees. We are aware of the personal impact of these changes, and we will do everything in our power to support the affected employees during this time with sensitivity, respect, and assistance.” [1]
Sources
- Calcalist / CTech (Meir Orbach), “Microsoft Israel cuts hit AI agent team, with 50 Copilot Studio employees summoned to pre-dismissal hearings”, 12 October 2026. https://www.calcalistech.com/ctechnews/article/40i8iql8n
- Globes (Meytal Vaizberg), “Microsoft cutting R&D jobs in Israel”, 12 October 2026. https://en.globes.co.il/en/article-microsoft-cutting-rd-jobs-in-israel-1001559221
