Cybersecurity Firm Cyberbit Shuts Down Israel Operations

Cyberbit, the cybersecurity training company, is shutting down its Israel office and laying off its local staff, according to Israeli media reports. The company has not said how many roles were cut, though the office reportedly employed several dozen people before the closure.

The closure also cuts one of Cyberbit’s last visible links to Israel, where it was launched as a spin-off from defense contractor Elbit Systems. Cyberbit built its name on cyber ranges, training platforms that let companies and government agencies run realistic attack simulations without putting live systems at risk.

Previous reports suggest that Cyberbit had already been moving away from its old ownership structure. In 2020, Charlesbank Technology Opportunities Fund invested about $70 million in the company, using about $48 million to buy part of Elbit’s stake and putting another $22 million into Cyberbit itself. Elbit sold the rest of its holding in 2023, leaving Cyberbit to operate as an independent company.

Cyberbit has also become a more US-focused business in recent years. The company now has several hundred employees worldwide, with much of its work based outside Israel, especially in the United States.

It is also worth noting that the shutdown in Israel appears to follow that commercial direction, not a public dispute or a decision the company has linked to one specific customer.

Additionally, Cyberbit’s purchase of RangeForce in September 2025 pushed the company further into the US and European markets. RangeForce added cloud-based training labs, more cyber range content, and teams outside Israel. It also gave Cyberbit a larger product set for companies and public sector customers that want to train cyber staff on realistic breach scenarios before a real incident.

Cyberbit has not linked the shutdown to politics, but the news comes at a sensitive time for US tech firms with work connected to Israel. In 2024, the BBC reported that Palestinians living abroad said Microsoft had closed email and Skype accounts they used to contact family in Gaza. Microsoft said the accounts had breached its terms of service, denied blocking calls because of location, and said Skype can restrict activity when fraud is suspected.

Microsoft has also faced a separate controversy involving its Israel business. In May 2026, The Guardian reported that Microsoft Israel general manager Alon Haimovich would step down after an inquiry into the company’s dealings with the Israeli military.

The report followed earlier findings that Unit 8200 had used Microsoft Azure cloud services in a surveillance system involving Palestinian phone calls. Microsoft has said senior executives were unaware of that use and had cut certain cloud and AI services after finding a terms-of-service breach involving mass surveillance of civilians.

Nevertheless, Cyberbit’s closure in Israel is not the same kind of case. It is a cyber training company making an operational and workforce decision after a major acquisition. But it arrives in a climate where US investors, cloud vendors and cybersecurity firms are being judged not only on growth, but also on where their technology is used, who their customers are, and how much control headquarters really has over local business ties.