Mobileye, a car technology company, has announced the closure of its after-market unit due to changes in the market in recent years. As of the end of 2023, Mobileye employed about 3,700 people worldwide, so the closure of the unit will affect about 3.5% of the company’s workforce.
The IMS (Intelligent Mobility Solutions) unit, which provided advanced driving assistance systems (ADAS) installed after the vehicle’s production process, will be shut down. This system was previously installed on the vehicle’s dashboard but has now been integrated into the production process of the vehicle itself. The demand for ADAS solutions installed after vehicle production has decreased as car manufacturers are increasingly incorporating these systems during the production process.
Mobileye’s President and CEO, Prof. Amnon Shashua, described this decision as a difficult one but acknowledged that it would allow Mobileye to focus resources on existing opportunities with minimal impact on its financial forecast for 2024. Intel, which controls Mobileye and trades on Nasdaq with a market value of $22.4 billion, is optimistic about its future prospects despite this closure. The company anticipates a decrease in revenue for 2024 but expects to return to normal levels by the end of the year with an emphasis on operating efficiencies and profitability as they navigate through this transition period.
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