Recent layoffs in the tech market have hit telecom equipment maker ECI of Petah Tikva.
The company is expected to send home some 150 of its employees in Israel
on Wednesday, and another 100 from its overseas plants, due to a slowdown in sales of tens of percentage points.
The company has 2,500 employees as of now. Termination letters will be distributed starting Wednesday.
Newly appointed CEO Darryl Edwards issued a letter to employees, in which he explained the reasons for the move. A copy obtained by Calcalist reveals that ECI does not feel alone in its downsizing moves.
Edwards said in the letter, "In order for the company to keep its competitive edge, it must lay down measures to streamline its cost structure. We have just completed our 2013 business plan, which is based on a significantly positive sales forecast stemming from existing and new clients, but also on cost cutting measures.
"After several difficult years, I now see an opportunity for us to translate the large investments we have made into significant growth," he added.
"Regrettably, streamlining efforts will manifest in the layoff of workers from several of the company's departments. The difficult decision had to be made to reduce the company's cost basis in order to affect the changes needed to boost the company and to enable it to focus on future business opportunities.
"I wish to personally thank the employees for all that they have done for ECI and wish them the best of luck in their future path."
This is far from being ECI's first layoff round. In recent years the company has sent hundreds of its employees home. Late last year it laid off 100 employees after making a similar number redundant in 2010.
ECI, a telecom equipment developer, is regarded as one of the largest technology companies on the Israeli market. According to Dun & Bradstreet, ECI's 2011 revenue was $580 million – a steep loss against the $750 million it made the year before.
The company, owned by businessman Shaul Shani, is currently holding talks for the sale of its Access division to Rosatom, Russia's state nuclear energy corporation. Last July, the company appointed Edwards as CEO, and estimates are that he is charged with the task of putting some of the company's divisions up for sale.
The company spokesperson declined comment.
This report was originally published in Hebrew