German technology giant Bosch is shutting down its artificial intelligence research operations in Israel, closing centers in Tel Aviv and Haifa as part of a broader global restructuring effort, according to the German business newspaper Handelsblatt.
The report was confirmed by a senior company employee.
The two offices employed about 30 people at their peak. According to Handelsblatt, they are the first Bosch research sites outside Germany to be closed and make Bosch the first major German company conducting research in Israel to leave the country.
The closure process is expected to be completed by the end of June.
Bosch said it will maintain a commercial presence in Israel through its subsidiaries and local distributors despite the shutdown of its research and development activities.
The company did not issue a public announcement on the move, possibly because of the relatively small size of the operation compared with Bosch’s global research and development workforce of about 82,000 employees. Bosch employs roughly 413,000 people worldwide.
Handelsblatt said the decision comes as Israel’s technology sector faces growing challenges related to regional instability and the ongoing conflict that began after Hamas’ Oct. 7, 2023, attack on Israel.
The newspaper also cited analysts who pointed to a broader slowdown in Israel’s technology sector, with venture capital and commercial technology investment falling to their lowest levels since 2018. The trend has raised concerns about the long-term competitiveness of Israel’s technology ecosystem, one of the world’s leading startup hubs, as geopolitical uncertainty continues to influence business decisions.
Matthias Jekosch, a corporate communications official at Bosch, told Handelsblatt that the decision was made in December and communicated to employees in Israel in January.
He said the closure was driven by economic and strategic considerations rather than political factors. Bosch is preparing for a broader reorganization that is expected to result in approximately 20,000 job cuts worldwide.
Jekosch said the closure was driven by economic considerations, noting that artificial intelligence (AI) expertise is increasingly concentrated in major hubs such as China, the US and Europe, particularly in the field of physical AI.
He added that Bosch is repositioning its operations in line with global market trends, technological developments and commercial potential.
Bosch began operating in Israel in 2018 as part of its global Bosch Center for Artificial Intelligence initiative.
Alongside centers established in the United States, China, India and Germany, the company opened offices in Tel Aviv and Haifa focused on artificial intelligence, sensor development and automation technologies.
The Bosch Center for Artificial Intelligence develops AI projects through the implementation stage, aiming to bridge the gap between fundamental research and practical applications.