Huawei closes Israel cloud division

Chinese electronics giant Huawei, which operates a development center in Israel under the name Toga Networks, is closing its cloud division in Israel and laying off 60 out of the more than 400 employees at the company. This is another move to downsize the Chinese giant’s Israeli development center, after at the end of 2023, a few weeks after the outbreak of the war, it closed its storage operations in Israel and laid off several dozen people.

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The move was made as part of a global organizational change that the Chinese company is carrying out in its cloud operations. It is merging many activities and prioritizing investment in the development of AI engines. Toga operates 12 additional development groups that deal with fast communication between chips, the development of data centers, cybersecurity and AI engines. According to its job site, Toga Networks is hiring new employees mainly for the development of communication chips and communication switches and for its cybersecurity activities.

In 2020, Toga Networks, along with dozens of Huawei affiliates around the world, was included in the US Department of Commerce’s list of entities that “endanger US national security and interests” due to its contribution to China’s technological advancement.

Toga Networks an Israeli company that was founded 17 years ago by Israeli founders and with Chinese funding, but it only officially became Huawei’s development center in 2010, at a time when relations between Israel and China were more cordial and before the trade war with the US became a focus of significant geopolitical tension. Toga in Israel operates differently from the company’s other development centers around the world – prototypes and patents are developed in the Israeli office and transferred to full product development in China.

Toga Networks said, “The company is currently in the midst of an organizational procedure, as part of an ongoing process to improve efficiency and focus business activity. Structural adjustments are expected as part of the process, including the integration of existing employees into other business units within the company.”

Published by Globes, Israel business news – en.globes.co.il – on February 15, 2026.

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