Mobileye closing aftermarket division, laying off 130 employees
Mobileye closing aftermarket division, laying off 130 employees
The unit that provides retrofitted advanced driver assistance technology has seen its revenues decline meaningfully to roughly $40 million on an annual basis, and in recent years has not positively contributed to Mobileye profitability
Mobileye is closing its aftermarket solutions unit that provides retrofitted advanced driver assistance technology, laying off approximately 130 employees, 90 of whom are in Israel.
In a statement released by Mobileye, the company says it has “chosen to wind down its aftermarket solutions unit that provides retrofitted advanced driver assistance technology, after a thorough review of this unit’s business prospects and investment needs.” The company did not specify the cost of the closure but stated that it is not expected to have any impact on its 2024 results.
The stated reason for this move is that automakers and other vehicle manufacturers have steadily increased the rate at which integrated ADAS solutions are installed on new vehicles, meaning the demand and future addressable market for retrofitted ADAS solutions has declined. As a result, this division has seen its revenues decline meaningfully, to roughly $40 million on an annual basis, and in recent years has not positively contributed to Mobileye profitability.
“This was a very difficult decision,” said Prof. Amnon Shashua, President and CEO of Mobileye. “The IMS division, formerly known as Aftermarket, was an early driver of Mobileye’s leadership, demonstrating that road safety can be effectively delivered at a low cost, a key catalyst for increasing adoption of ADAS technologies on new vehicles. Unfortunately, the success of Mobileye’s built-in ADAS solutions has diminished the opportunities for retrofit solutions to the point where it is no longer viable to continue the retrofit solutions activity.”
