Mobileye’s sprawling Jerusalem campus, once a symbol of the city’s high-tech ambitions, now stands noticeably underutilized amid rising demand for workspace in the company’s Tel Aviv and Nes Tziona offices, highlighting a broader challenge faced by firms operating in the capital. The global autonomous driving firm employs approximately 3,900 people in Israel, with some 2,700 based in its Har Hotzvim campus in Jerusalem. However, recent observations by employees indicate that while the Jerusalem site remains relatively sparse, offices in central Israel are operating at full capacity, with intense competition for desks.

Eyal, a software engineering team leader at Mobileye, recounted being struck by the crowded conditions in the Tel Aviv and Moovit offices, the latter being a public transit company acquired by Mobileye. His experience mirrors a known pattern within the company: many employees prefer working out of central Israel locations, sparking fierce competition among team leaders to secure workspaces in Tel Aviv.

The phenomenon is linked to the company’s workforce composition. Jerusalem-based staff include a significant number of liberal religious and Haredi employees, coupled with some secular workers trained at the Hebrew University of Jerusalem. While Mobileye has invested in retaining talent, secular workers—particularly graduates of Hebrew University—tend to relocate to Tel Aviv, where a larger and more vibrant tech ecosystem exists. Benny, a former Mobileye algorithm engineer, explained that many university students initially work for Mobileye in Jerusalem but eventually move to Tel Aviv, compelling the company to either keep them at a distance or lose them entirely.

The trend has accelerated since Mobileye reinstated an office work policy in mid-2024, requiring employees to be onsite at Har Hotzvim four days per week. Secular employees, many of whom had relocated to central Israel during the pandemic’s remote work period, strongly resisted returning to Jerusalem. This shift has resulted in a declining presence of secular workers at the Jerusalem campus, with people like Sapir, a programmer and Hebrew University graduate, noting a steady stream of departures.

Mobileye’s recent performance has been under scrutiny after founder and longtime CEO Amnon Shashua stepped down in July to focus on new ventures, while still remaining involved in management. His departure coincided with a 9 percent drop in the company’s stock value. Additionally, Mobileye has faced financial pressures, citing currency issues as the reason for freezing salaries this year, and the company’s subsidiary Moovit laid off nearly a third of its workforce on the same day Shashua announced his resignation. Despite plans to pivot toward the autonomous taxi market and expanding into robotics after acquiring Mentee Robotics, these moves have yet to stabilize investor confidence.

Mobileye’s growth and prominence had long been seen as a major achievement for Jerusalem, enhancing the city’s reputation as a high-tech hub capable of rivaling Tel Aviv. The company’s eight-story, 128,000-square-meter Har Hotzvim complex, inaugurated in 2024, was envisioned as a centerpiece for this vision. However, some former employees have criticized the campus as an impractical and alienating workspace symbolizing misplaced priorities and out-of-touch leadership. The recent approval to build a helipad on its rooftop has been cited as emblematic of this disconnect.

This corporate challenge unfolds amid broader economic and demographic shifts in Jerusalem. Mayor Moshe Leon, who secured a decisive reelection in 2024, has prioritized developing employment centers, expanding the light rail network, and encouraging high-rise housing to retain the city’s “productive population” including secular, traditional, religious, and modern Haredi residents. Officials emphasize Jerusalem’s strengths such as its universities, medical centers, and emerging biotech and defense sectors, as well as the presence of global tech firms like Microsoft and Apple, attracted primarily by proximity to local talent.

Despite these efforts, skepticism remains among industry insiders who argue that Jerusalem’s political climate and societal dynamics hinder its ability to compete with Tel Aviv for high-tech talent. The city’s continued division between diverse communities, coupled with high living costs and infrastructure challenges, dampens enthusiasm among recruiters and employers. Dror Litvak, CEO of Manpower Group Israel, underscores the difficulties in hiring in Jerusalem compared to Tel Aviv, where surveys consistently show stronger employer confidence and a denser concentration of tech companies.

Data from Manpower Group highlights the disparity: Tel Aviv hosts more than 2,600 software development firms, compared to just 665 in Jerusalem, with even starker contrasts in infrastructure and consulting sectors. This imbalance reflects the entrenched dominance of Tel Aviv as Israel’s tech capital.

As Jerusalem grapples with these systemic issues, the future of its high-tech sector and the fate of companies like Mobileye — once Jerusalem’s pride — remain uncertain. Efforts to foster economic growth and urban renewal are underway, but many insiders caution that significant hurdles must be overcome before the city can close the gap with Tel Aviv’s flourishing industry.