The Israeli military is preparing to release around 10,000 reservists by the end of July as it grapples with mounting financial pressures, according to local media on Sunday.

The Israel Hayom newspaper said the number of reservists on active duty is expected to decline from about 60,000 to around 50,000, reflecting growing strain on the military’s budget. It added that a final decision has yet to be made and is expected in the coming days.

According to the report, the move comes as Israel’s military faces a severe funding crisis following an unprecedented surge in military spending, resulting in a budget shortfall estimated at tens of billions of shekels.

Israeli media, including Yedioth Ahronoth and Calcalist, reported that the planned reductions would affect reservists serving in the regional defence system, including personnel assigned to protect illegal settlements around the Gaza Strip and the occupied West Bank, as well as staff at military headquarters.

The reports said the planned cuts coincide with deep disagreements between Israel’s defence and finance ministries over the size of the defence budget.