Germany’s Merck Group plans to impose cuts at two Israeli development centers with dozens of layoffs. The centers where there will be cuts are the Jerusalem Electronics Center based on the acquisition of Qlight Nanotech in 2015, and the R&D activity at the Life Sciences Center (Research and Laboratory Technologies) in Rehovot, based on the Sigma-Aldrich acquisition in 2014.
The Interlab drug development site in Yavne will undergo a change, in which there will initially be layoffs, but then new personnel will be hired, in more innovative areas of drug development, in Israel's comparative advantages, for example, areas of drug development using AI. No changes are known about at Versum Materials in Kiryat Gat.
Merck said, "Merck is committed to Israel and will remain here. We are downsizing in some areas, as part of a global strategic shift, and intend to expand activity in some other areas, in order to be more customer-oriented and better utilize the advantages of the Israeli ecosystem, in all three of our areas of activity - life sciences, biotech and electronics."
Merck has been active in Israel since the 1970s, in marketing, but its romance with Israel in drug development began in the 1990s with the Rebif drug for multiple sclerosis. The Weizmann Institute of Science developed the drug with Serono, and when Merck acquired Serono, it established an R&D center for drugs in Yavne, called Interlab, in the early 2000s.
Merck has three divisions - biological drugs, chemical drugs and materials. In 2019, the Materials Division acquired Jerusalem-based startup Qlight, which was developing nanotechnology. Shortly before that, in 2014, Merck acquired Sigma-Aldrich Corporation, taking over its Rehovot operations. In 2023 Merck had 450 employees in Israel.
Published by Globes, Israel business news - en.globes.co.il - on July 19, 2026.
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