German technology and engineering firm Bosch has decided to close its two research offices in Israel, ending operations that began in 2018, Anadolu reports.
The move marks the first closure of a Bosch facility abroad since the COVID-19 pandemic and the first known withdrawal by a major German company from Israel’s research ecosystem, according to a recent report by German business daily Handelsblatt.
The decision was not announced through an official company statement and comes as Bosch plans to cut 20,000 jobs in Germany.
Matthias Jekosch, a corporate communications official at Bosch, told Anadolu that the decision was made in December and employees were informed in January.
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.
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Bosch launched its research activities in Israel in 2018 through the Bosch Center for Artificial Intelligence (BCAI), operating from offices in Tel Aviv and Haifa.
The closure of the two offices, which focus on AI, sensors and automation, is expected to be completed by the end of June.
Bosch will maintain its commercial presence in Israel through its subsidiaries BSH, Elmo Motion Control and Bosch Ventures.
Andrea Frahm, head of the German Helmholtz Association’s Tel Aviv office, was quoted as saying that German experts and families with children have been reluctant to relocate to Israel since Oct. 7, 2023, as the war environment damaged operational stability.
Frahm said German companies are unlikely to open new offices in the country without greater planning certainty.
Israel’s technology sector has faced mounting challenges in recent years, with investments and commercial deals falling to their lowest level since 2018 amid global economic pressures and the prolonged war, according to analysts.
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