Mobileye Announces 200 Layoffs Amid Strategic Restructuring Despite Rising Robotaxi Momentum

Just as Mobileye’s long-awaited robotaxi vision begins to take shape, the Israeli autonomous-driving company is launching a significant cost-cutting initiative. The company announced it will lay off 200 employees, representing about 4% of its global workforce.
Since most of Mobileye’s 4,300 employees — more than 3,000 — are based in Israel, the majority of layoffs are expected to impact its Jerusalem headquarters and Tel Aviv campus.

Unlike previous rounds of cuts over the past year, this reduction is company-wide and not focused on a single unit.
This comes after two years of structural changes, including:

• Closure of the LiDAR division, which employed 60 workers

• Closure of the Lane Departure Warning Systems division, which employed 130 workers — 90 of them in Israel

The company says the current move reflects a “broad organizational adjustment” and not a shift in product strategy.

Layoffs come during a business rebound

The timing of the cutbacks is notable: Mobileye is currently recovering from two turbulent years, marked by customer backlog issues, weakness in the Chinese auto market, and delays in the transition to autonomous taxis worldwide.

Recent financial data show mixed signals:

• Q3 2025 revenue: $504 million, up 4% year-over-year

• Cash flow: Record $167 million in Q3

• Year-to-date cash generation: Nearly $500 million

Mobileye expects to conclude 2025 with $1.9 billion in revenue and an improvement in operating profitability.

While China remains Mobileye’s most significant revenue source, the company is accelerating its robotaxi initiatives:

Lyft partnership in Dallas

Mobileye and Lyft plan to launch driverless taxis in Dallas, Texas, pending final integration of the chosen vehicle supplier.

An additional joint initiative with Volkswagen and Uber aims to deploy Mobileye-powered robotaxis in Los Angeles starting in 2026, which would mark the company’s first major commercial rollout in the United States.

Company statement: support for affected employees, continued hiring for key roles

Mobileye said in a statement:

“As part of an ongoing assessment of changing needs, adjustments are being made to the workforce. The company will support the affected employees while continuing to recruit for positions essential to executing our long-term strategy.”

Company profile and market performance

Mobileye develops autonomous driving technologies and advanced driver-assistance systems (ADAS) used to prevent accidents and enable higher levels of vehicle automation.

The company is traded on NASDAQ with a market valuation of $9.5 billion, after its stock fell 41.3% since the beginning of the year.