SanDisk Lays Off Israeli Development Staff Amid Record Profits and Project Shift to India

Dozens of employees were let go from SanDisk’s development operation in Israel, which employs roughly 700 staff across Kfar Saba, Tefen and Omer. The cuts affect workers in multiple departments and were announced only weeks before the company plans to launch an employee stock purchase program (ESPP). SanDisk has not issued a public comment on the layoffs.

CTech

SanDisk’s shares have surged by more than 3,400 % over the past year, climbing from about $37 in August 2025 to roughly $1,600 at the close of the most recent trading day. The company reported quarterly revenue of about $9 billion—almost five times the prior-year level—and net profit of approximately $6.9 billion, with an order backlog of $91 billion tied largely to long-term contracts with major cloud and AI providers. AI-driven server farms now account for 38 % of revenue, up from 12 %, and operating cash flow reached $7.1 billion. The ESPP will allow employees to purchase shares at a discount that could translate into hundreds of dollars per share for many staff.

CTech

Industry sources say the layoffs are linked to a strategic decision to move development of NVMe SSDs for cloud and AI servers to SanDisk’s center in India. The Israeli sites will retain responsibility for a new “Stargate” platform based on advanced controllers and higher-capacity storage solutions. The shift follows a broader trend of U.S.-based tech firms expanding operations in India, where labor costs are estimated to be up to 40 % lower than in Israel after accounting for social-benefit expenses.

Globes

Affected workers expressed disappointment, noting that the timing jeopardizes their ability to benefit from the forthcoming ESPP. Ronen Solomon, founder and CEO of equity-management firm altshare, explained that the program typically lets participants buy shares at about a 15 % discount, but warned that the financial gain for employees does not necessarily drive corporate layoff decisions. Eyal Solomon, head of placement firm Ethosia, highlighted structural pressures on Israeli employers, including extended military reserve duties and a strong shekel that raise local labor costs relative to Indian counterparts.

Globes

The SanDisk cuts add to a pattern of multinational semiconductor firms reducing Israeli headcounts while expanding in lower-cost regions. Analysts suggest that the combination of soaring stock valuations, generous employee-ownership programs, and cost differentials may accelerate similar relocations, potentially reshaping Israel’s high-tech employment landscape in the coming years.

Globes