Comverse, letting go
Photo: Jeremy Feldman
CEO Andre Dahan - 4th wave of layoffs
Comverse to fire hundreds – many in Israel
Economic crisis continues to claim victims as international high-tech company prepares for third wave of layoffs in recent months, with reportedly 400-500 workers throughout the world, including Israel, to be sent home
Comverse Technology is preparing for a new wave of layoffs, of hundreds of employees, which will be the third such wave in recent months.
The exact number is yet to be set, but experts reported it would be between 400-500 workers, a significant chuck of which will be from the Israeli branches. Experts also said this wave of layoffs is not likely to be the last in the company.
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Comverse employs some 4,500 workers throughout the world, with 2,600 of them in Israeli offices. Most of Comverse's employees abroad are located in the United States and France.
This is CEO Andre Dahan's fourth wave of layoffs since he entered his post in April 2007. In June 2007 the company fired some 350 employees, at the end of 2008 125 workers were laid off, and in recent moths another 20-30 workers were also let go.
The layoffs came adjacent to a wave of layoffs by Comverse's competitor Amdocs, who fired over 500 employees in recent months.
Like other high-tech companies, Comverse has been forced to deal with the repercussions of the global economic crisis that has caused a slow-down in markets.
In a report published by the RBC investment house, analysts predicted a 5% drop in Comverse's income in 2009, with an income of $1.97 billion expected. Prior forecasts saw a total income of $2.24 billion for the company this year.
In addition to the layoffs prompted by the economic crisis, the company is also undergoing a reorganization process, which began in August 2008. The plan includes dividing the company's activity to three independent divisions: Products, services, and sales.
Comverse was ranked first place in the world in the field of billing in a poll that was published last month by the Yankee Group research firm.
Comverse deals with software and systems solutions for network-based multimedia communication and billing services.
