ECI Telecom to fire 100-150 more employees

The last wave of layoffs was a year ago; then-ECI CEO Rafi Maor said at the time that the layoffs were part of the company’s strategy.

By SHMULIK SHELAH/GLOBES
October 16, 2011 22:27
1 minute read.
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man speaking on cell phone cellular 311 (R). (photo credit: REUTERS/Fred Prouse)

 
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ECI Telecom will fire 100-150 more employees in Israel after the holidays, sources inform Globes.

The last wave of layoffs was a year ago. Then-ECI CEO Rafi Maor said at the time that the layoffs were part of the company’s strategy.

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Swarth Group, controlled by Shani and Britain’s Ashmore Investment Management acquired ECI in 2007 for $1.24 billion.

ECI’s first subsequent move was to fire 700 employees as part of a restructuring and the outsourcing of operations to Flextronics International. ECI carried out subsequent waves of layoffs, which reduced its workforce to 3,000 employees by June, including 1,600 employees in Israel - which included 100 at a new development center in Beersheva.

Telecommunications equipment vendors, including ECI, have been hit by a deteriorating business climate in the past few years. The company reportedly had $600-700 million in sales in 2010, the same as in 2009, although it expects 24 percent revenue growth in 2011.

ECI has had a stormy year, including Maor’s taking over as chairman from Shaul Shani, and the reappointment of Giora Bitan as CFO. Shimon Bart replaced Maor as president and CEO. The company says that the measures were taken to return to Wall Street in mid-2012.

ECI’s spokesman said in response, “As part of the company’s preparations for the challenges facing it in 2012 and afterwards, and in order to maintain the annual growth rate forecast for 2011, the company’s management is considering how to exercise its internal work plan, which will be the company’s future growth engine.”

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