Israeli technology companies are facing financial pressure due to the sharp decline in the shekel-dollar exchange rate. While importers benefit from cheaper imports, exporters, especially in the technology sector, are seeing the value of their dollar-denominated capital and sales erode when converted to shekels, making it harder to cover local expenses like salaries. This shift is forcing many companies to reconsider their staffing levels, pay structures, and overall expense plans, with some contemplating layoffs or moving jobs overseas. The situation is compounded by the fact that most capital for these companies comes from foreign investors in dollars, making it difficult to switch to raising funds in shekels. Currency hedging offers some relief, but it is costly and not a permanent fix, leaving companies with few options besides cost-cutting measures.