According to reports in Israeli news outlet, mobile navigation vendor Telmap is rumored in to be downsizing its local staff. The company bought by Intel in September 2011 has more than 200 employees in Israel.
Historically Telmap was licensing its mobile navigation software to wireless operators until Google, Nokia and more recently Apple started to offer free navigation to their OS and devices. Telmap has therefore adapted its model to advertising and couponing both workign with wireless operators and with their own brand M8 (to be pronounced “mate“).
Long awaited US come-back…
One of Telmap’s plan was also to make a come-back on the US market as stated by its CEO Oren Nissim during an interview with GPS Business News in February 2012. 18 months later we are still waiting for it despite the fact Oren Nissim restated this goal several times since then.
But if Telmap is reducing their operations in Israel, that could mean other things than real trouble for the subsidiary of Intel.
Indeed our research indicates that since 2009 Telmap has been “offshoring“ a significant part of its software development to a subsidiary called Telmap Services, based in Bucharest, which employs around 100 software developers. So this downsizing, if confirmed, could be more jobs in Romania and less in Israel.
It might also be the case that custom developments for wireless operators – less strategic than a few years ago – are disappearing hence justifying these redundancies.
At the time of publishing Telmap has not yet replied to our request for comment sent earlier today. We will update this article if they follow up with us.