Moovit Cuts 30% of Workforce Amid Strategic Shift Toward Consumer and Mobileye Integration

Moovit, the public transportation navigation company, is laying off approximately 60 employees, about 30% of its 200-person workforce. The decision follows a comprehensive review of the company’s operations and strategic priorities, according to a letter from the CEO to employees obtained by Globes. The restructuring aims to reduce investments in Mobility-as-a-Service (MaaS) activities and reallocate resources to grow the consumer segment and deepen technological integration with parent company Mobileye in the robotaxi sector.

Mobileye recently announced plans to operate its own robotaxi service in the United States, moving beyond merely selling systems to automakers like Volkswagen. Moovit, acquired by Mobileye five years ago for around $900 million, will play a significant role in this effort. Employees involved in the B2B division and other non-core areas are expected to be among those laid off.

Mobileye CEO Amnon Shashua emphasized in an investor call that Moovit is a valuable asset for optimizing vehicle supply and demand, trip planning, and passenger engagement. He noted the formation of joint teams between Moovit and Mobileye to accelerate development and the plan to add the Mobileye logo to Moovit’s U.S. app to boost brand recognition. The letter also highlighted that integrating artificial intelligence throughout the development cycle over the past year has improved productivity and necessitated organizational adjustments for future product development.

Earlier this year, reports indicated Moovit was up for sale at a significantly lower valuation than its 2020 acquisition price. The current restructuring reflects a strategic pivot to focus on consumer-facing services and robotaxi technology under Mobileye’s leadership.