Head of Microsoft’s Israel branch to step down after inquiry into dealings with Israeli military

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Published: 2026-09-03 • Permanent link

Amidst a flurry of regulatory scrutiny, Microsoft's Israel branch is set to lose its top executive following an inquiry into the company's dealings with the Israeli military. The head of Microsoft's Israeli subsidiary, Gilat Shlomo, is reportedly stepping down in light of the investigation. The news has sent shockwaves through the tech industry, with investors expressing concerns about the potential implications for Microsoft's business in the region.

As the tech giant faces mounting pressure, the fallout is being felt across the global economy. The loss of Shlomo, who has been instrumental in shaping Microsoft's Israel operations, is likely to have a significant impact on the company's ability to navigate the complex regulatory landscape in the Middle East. With the Israeli military's use of company technology to support mass surveillance of Palestinian phone calls sparking international outrage, the pressure on Microsoft to address these concerns is intensifying.

Since the Guardian revealed the extent of Israel's use of Microsoft technology to support its surveillance operations, the tech industry has been grappling with the implications of this revelation. Microsoft's Israeli branch has been at the center of the controversy, with many calling for greater transparency and accountability from the company. Experts argue that the incident highlights the need for greater scrutiny of tech companies' dealings with authoritarian regimes and the importance of robust oversight mechanisms to prevent such abuses.

What drove this crisis to a head was the growing awareness of the Israeli military's use of Microsoft technology to support its surveillance operations, which has sparked widespread condemnation and calls for greater transparency. As the tech industry continues to grapple with the fallout from this incident, investors will be watching closely for signs of how Microsoft plans to address these concerns and restore trust in its Israel operations.