Sources inform ''Globes'' that mobile carrier Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) will reduce its workforce by 700 employees, following its merger with sister company ISP and international calls carrier 013 NetVision Ltd., not 140 employees as it claimed earlier. The higher figure is due to more cuts to be implemented and a slower pace of hiring of new employees by the companies.
The figure disclosed by Cellcom appeared to be low, as it has 4,700 employees and NetVision has 2,000, and it seemed reasonable that a large number of them would lose their jobs following the merger of the two IDB Holding Corp. Ltd. (TASE:IDBH) subsidiaries.
In Sunday's announcement, Cellcom said NetVision's HQ staff in Rosh Ha'Ayin would move to Cellcom's HQ in Netanya. Cellcom said, "With a view to the future of the merger structure, and a wish to keep a maximum number of employees from both companies, positions that became available at the companies' headquarters. Most headquarters' employees who will end their jobs as a result of the merger hold redundant positions and no alternative jobs were found in the consolidated operations. This involved 140 employees at the two companies' headquarters whose employment was terminated after an organized hearing procedure."
In response to today's report, Cellcom referred to Sunday's announcement and said that it would not comment on rumors.
Published by Globes [online], Israel business news - www.globes-online.com - on December 6, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011