2024-03-18 13:15:50
The car technology company Mobileye is closing its after market unit, due to the changes in the market in recent years. 130 employees will be laid off in the process, of which, according to estimates, about 90 are in Israel. As of the end of 2023, Mobileye employed about 3,700 people worldwide (an increase of about 200 people compared to the year before), so the closing of the unit will actually affect about 3.5% of the company’s workforce.
Mobileye reported today that after a thorough examination of its business forecasts and investment needs, it decided to close the IMS (Intelligent Mobility Solutions) unit, which provides advanced driving assistance systems (ADAS) that are installed after the vehicle’s production process. This is actually a system that Mobilya installed on the vehicle’s dashboard, systems that are now already integrated into the production process of the vehicle itself. Mobilay stated that as the car manufacturers steadily increased the rate at which built-in ADAS solutions are installed in new vehicles as part of the production process, the demand and business potential for ADAS solutions installed after the vehicle is manufactured decreased. As a result, the sales turnover of the now-closed unit dropped significantly to around $40 million per year, and in recent years it has not been profitable.
“It was a difficult decision,” said Professor Amnon Shashua, president and CEO of Mobilay. “The IMS unit, which used to be called the aftermarket unit, contributed to Mobilay at the beginning and proved that safety can be provided efficiently and at a low price, and was a major catalyst for the implementation of ADAS technologies in the vehicle new car “Unfortunately, the success of Mobileye’s ADAS products, which are installed by the car manufacturers during the car production process, has reduced the opportunities for flavoring solutions in the market after the car has been manufactured, to the point where the continuation of the unit’s activity is no longer worthwhile.”
resource targeting
Mobilay estimates that the move will help focus resources on existing opportunities, and notes that the company will work to support the 130 employees who will be affected by the move. This is a move that will take several months to complete, and is not expected to significantly affect Mobileye’s financial forecast for 2024.
Mobileye, which is controlled by Intel, is traded on Nasdaq according to a market value of $22.4 billion, after a 32% increase in the share price since the IPO at the end of 2022. According to forecasts published by the company at the beginning of the year, 2024 will be a year of contraction in revenues, and they will reach -1.83 1.96 billion dollars, a decrease of 5.7%-12% compared to 2023. The decrease is expected mainly at the beginning of the year and this is due to the effect of the existing stocks, and the expectation is to return to normal levels of stocks towards the end of the year. The company expects an operating loss of 378-468 million dollars this year according to the accounting rules the accepted and an adjusted operating profit of 270-360 million dollars.
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