Israel's space industry is facing a financial crisis that could lead to half of its workforce getting laid off in the coming year. The statement was made by academics and industrialists speaking at a hearing of the Science and Technology Committee of the Knesset on Tuesday. Yossi Weiss, General Manager of Israeli Aerospace Industries' (IAI) space division, said that the industry as a whole has already laid off 15–20 percent of its scientific and engineering work force over the last three months.
According to Isaac Ben-Israel, chairman of the Israel Space Agency, the crisis has been triggered by defense and higher-education budget cuts, combined with the expense of sustaining and replacing an ageing infrastructure created during the program’s early years. “The Israeli government must more than double its spending on space research and development, from about US$60 million a year today to $150 million a year, to save the industry and maintain the country's position as a small but key player on the world stage,” Ben-Israel told the committee.