"We undertook an analysis of the company's business during the first quarter," Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) president and CEO Eran Gorev told "Globes" today. "We identified many opportunities and much potential in the WiMAX market, but there are fields where we are not ready to maximize the potential."
The WiMAX solutions developer today published its financial report for the first quarter of 2010 and is also about to fire 170 employees, about 20% of its global workforce. Gorev said that Alvarion was a product-oriented company, and that it proposes to offer complete products, which include support WiMAX end-to-end networks, rather than merely be a component in them.
"Globes": If that is the case, why fire employees?
Gorev: "We looked inward to see our budget sources and the financing of these investments. Some will be implemented by transferring people within the company. Some employees lack the skills relevant for the planned investment. There are fields that no longer yield much for the company, such as old products, and we saw that we could streamline."
Did you take over a company with inflated expenses?
"No. I received a company with excellent people and market opportunities, and I concluded that it is possible and necessary to strengthen capabilities in certain fields. This depends on market developments. Investments from a year ago may no longer be suitable today, because the market's dynamic."
What's the mood in the company corridors?
"I'm convinced that everyone regrets separating from friends, but on the other hand, the employees believe in the company and in the market, and they understand the need to maximize our chances of success. Regrettably, a number of projects were postponed last year because of the crisis and government procedures, but we believe in the market."
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2010
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