Intel is to close Telmap, the Israel-based navigation app developer that it bought for $120 million in 2011, reports Israeli publication Globes.

Telmap, which developed the M8 navigation app for iOS and Android, is believed to be assessing the future of more than 150 employees in Israel, with many likely to lose their jobs. Some will be selected to join Intel Israel, according to sources.

Intel Israel said in a statement to Globes that the company is “prioritising its business activities” and as a result has decided to close Telmap and withdraw from the navigation app sector.

The M8 app will continue to function in Israel and other countries, while Telmap will honour contracts with mobile operators until they expire.

A raft of redundancies followed Intel’s acquisition of Telmap and the company’s attempts to alter its strategy by offering the app for free, appears to have failed.

The closure appears to have come with little warning. As recently as last week, the company’s management announced a cooperation agreement with Israeli start-up Anagog to integrate the latter’s app with M8.