Mobileye’s Moovit cutting 10% of staff
Mobileye’s Moovit cutting 10% of staff
Around 20 employees are being let go by the company, which was acquired for $1 billion four years ago
Moovit is laying off around 10% of its workforce, with around 20-25 of its 225 employees to leave the company.
The journey planning app, acquired by Intel for Mobileye for approximately one billion dollars four years ago, replaced its CEO three months ago for the first time since its establishment 13 years ago. Nir Erez, the company's co-founder, stepped down and transitioned to serve as president and advisor to the CEO, with Nir Bezalel being appointed in his place. Bezalel held various senior positions since the company's inception, serving as VP of Research and Development and most recently CTO.
Moovit’s management changes were believed to be related to the expiration of the retention period for senior executives as part of the purchase agreement, which required them to remain with the company for four years following the acquisition. In light of this, co-founder Roy Bick is also set to depart, and it is estimated that other senior managers may follow suit in the future. Moovit's revenues have reportedly grown at a high rate in recent years, and it is expected to achieve positive cash flow from operations this year.
"Moovit is making the necessary adjustments to focus on the company's core business and accelerate the transition to profitability," the company said in a statement. "The company will do everything in its power to support employees who will be affected by the move. Moovit will continue to invest in expanding its portfolio of solutions for private and business users in mobility and other areas, in order to realize its business strategy."
