"Zim is facing a tough period, and will have to make substantial cuts," said company president and CEO Doron Goder yesterday at an internal meeting of the shipping company convened to discuss company plans for next year.
Zim is the shipping arm of Israel Corporation (TASE: ILCO).
Goder's outlook for the immediate future was grim. "Zim is not the large company it once was. Our activity has fallen significantly over the last few months and we have to adjust ourselves accordingly. The size of the company will need to reflect the current volume of business with all that entails," he said, hinting at the expected cuts.
Sources inform ''Globes'' that the Zim management is due to meet with employees next week to inform them of the planned streamlining, and the two sides will probably discuss the option of layoffs. Zim currently employs 900 people in Israel and a further 3,500 overseas.
Goder nevertheless sounded a note of optimism about the future. "Despite everything, I believe in our ability to survive this tough period," he added.
Published by Globes [online], Israel business news - www.globes-online.com - on November 27, 2008
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