The cutbacks at Comverse Technology Inc. (Pink Sheets: CMVT) are continuing. A letter, signed by VP human resources Rami Pinhas, sent to employees today lists more reductions. There were already hints of the pending measures last week.
Pinhas wrote, "In recent months, the Israeli labor market has undergone upheavals caused by the global economic crisis. Economic reality compels us to undertake measures that will ensure the continuation of Comverse's business in a manner that will enable emergence from the crisis and getting back on the road to growth."
He adds, "We wish to list the measures decided on by the company management, which will be implemented immediately."
The measures are: "As of April 1, 2009, lunch subsidies for Comverse employees will be discontinued, both at outside restaurants and at the company's dining rooms." The gym at the Comverse 2 Building will be closed. Pinhas stated, "This decision was taken both as a cost-cutting measure and because few employees use the service."
Passover holiday vouchers have been cancelled. "In view of the cuts in benefits, no holiday coupons will be distributed as in previous years. We nevertheless see fit to note that a modest gift will be distributed in early April."
In addition, "All employees will be asked to use five vacation days by the end of August 2009."
Pinhas concludes, "We are sure that you will show understanding and patience regarding the new arrangements."
Published by Globes [online], Israel business news - www.globes-online.com - on March 23, 2009
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