Sportswear and lingerie maker Tefron Ltd. (Bulletin Board: TFRFF; TASE:TFR) today announced that it will fire 15% of its workforce as part of its streamlining plan. The company had 2,000 employees at the end of 2007, the date of its last report, most of whom were in Israel, with several hundred employees in Jordan.
Tefron's streamlining plan includes the consolidation of its manufacturing plants in Jordan, improving productivity, and cost-cutting. The company will also expand its marketing in Europe, and open surplus outlet stores in Israel.
Tefron added that it expects these measures to mitigate the effect of the global economic situation on its business results by adjusting the company's resources to its projected production over the coming year, while maintaining competitiveness and profitability for the day after the economic crisis passes.
Tefron is controlled by First Israel Mezzanine Investors Fund (FIMI) and Mivtach Shamir Holdings Ltd. (TASE:MISH). Tefron's share closed at $3.36 on the Bulletin Board on Friday, giving a market cap of $7 million. The share was unchanged on the TASE by midday today at NIS 14.50
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2009
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