Mobile navigation software developer Telmap laid off 20 employees today.
Telmap's navigation program is used today by all of Israel's cellular operators: Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), Pelephone Communications Ltd., and MIRS Communications Ltd.. The program also works in many other countries.
Herzliya Pituah-based Telmap, which has branches in Europe and the US, had 240 employees before the current cuts - the firm essentially cut 8% of its workforce. Its main customers are cellular operators in Israel and overseas.
In the past year, the company has had to compete with new players Google and Nokia, who decided to distribute their own navigation programs for free, as an alternative to Telmap's for-pay program.
As a consequence, Telmap developed a strategy with the mobile companies to include its program as part the cost of the mobile devices, so that when customers buy a mobile phone, they will generally get the program at no added cost. The move kept Telmap unhurt by the competition, and in recent months it turned profitable.
Telmap declined to comment on the news.
Published by Globes [online], Israel business news - www.globes-online.com - on October 3, 2010
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