Comverse cutting Israel workforce too
Telecom billing solutions provider expected to dismiss dozens of employees in biggest round of layoffs in company's history. Fashion company Gottex also firing workers
The employees were informed of the upcoming layoffs about a month ago, but they were postponed until after the Jewish High Holidays. These dismissals join several previous rounds, which included hundreds of company workers.
In January, Comverse fired some 120 workers worldwide, including 30 in Israel. In June 2012, the company discharged 20 employees in Israel.
Company workers told Ynet of feelings of confusion and uncertainty. "Everyone is stressed," one of the employees said. Another worker said, "Rumor has it that they've locked the doors to the roof to prevent suicides. We don't know why and how many. We have no idea."
Another employee noted that "there are rumors, but no one has spoken to us. There have been no talks in the company and no warning letters have been sent out."
The Tel Aviv-based Comverse provides software solutions for cellular communication operators. The company employs some 4,000 workers, 1,500 of them in Israel.
Comverse declined comment.
'Dangerous sign'
Fashion company Gottex has also launched a round of layoffs of dozens of workers as part of a restructuring plan which includes manpower cuts.
The company said in a statement that it was "launching a series of restructuring moves in line with seasonality. One of the restructuring moves is cutting our workforce, which will see a small number of workers out of the 2,500 laid off."
These moves follow additional rounds of layoffs reported by several companies in the past two weeks. Israel-based pharmaceutical giant Teva announced its plan to cut about 10% of its workforce worldwide throughout 2014. The company said in a dramatic statement that some 5,000 employees would be dismissed, 700 to 800 of them in Israel.
Following a meeting last week with Histadrut Chairman Ofer Eini, Teva CEO Jeremy Levin said the layoffs would be suspended until an agreement was reached with the labor federation.
The Haifa-based Oil Refineries (ORL) company, which is controlled by the Ofer family's Israel Corporation and Israel Petrochemical Enterprises, announced last week its plan to dismiss some 240 employees following heavy losses suffered by the company in recent years.
The Flextronics factory in Ofakim also fired dozens of workers last week following a drop in reservations.
In September, networking infrastructure equipment provider ECI Telecom launched a wave of layoffs expected to affect one-quarter of its significant workforce in Israel. Some 250 to 300 out of the company's 1,200 employees in Israel are set to be fired – the biggest wave of dismissals in the company's history and one of the largest in the high-tech industry these days.
According to Yossi Fraiman, CEO of the PRICO financial risk management and investment consultancy, "ECI, Teva and Comverse's layoff announcements are a dangerous sign requiring an overall effort to preserve the profitability of exports and the future growth of the Israeli economy.
"The flight of companies begins with dismissals, but spreads like wildfire upon being given social legitimacy."
Gilad Morag contributed to this report
