Comverse recently began to lay off employees, and is expected to eventually fire 4 percent of its manpower. Comverse currently employs 2,380 people in Israel and an additional 5,200 worldwide.
The structural changes expected in Comverse are the result of changes in personnel at the company's directorate in recent year, including the resignation of Kobi Alexander, one of Comverse's founders, who was forced to leave following his backdating affair. Comverse CEO Zeevi Bergman also quit his post recently.
It appears that Comverse is rapidly transforming into an American company that refuses to adopt previous managerial policies and that has no special attachment to Israel.
All executive decisions are expected to be made in the United States, while only a small operational core will remain in Israel. In addition, the company is examining the possibility of moving most of its development activity to the Asia Pacific region within a year.
The final decision as to Comverse's fate lies in the hands of Comverse Technology's new president and CEO, Andre Dahan.
Comverse Technology said in response that, "The report is unfounded. We have no plans at the moment to move Comverse's research and development center and the directorate outside Israel. The Board of directors is looking into all the alternatives regarding the company's strategic plan. At this point, no decision regarding a specific plan has been made."