Orckit Communications Ltd. (Nasdaq: ORCT; TASE: ORCT) will fire 40 employees, as part of a plan to cut expenses by $6 million, according to a filing with the US Securities and Exchange Commission (SEC) and notice to the Tel Aviv Stock Exchange (TASE). The layoffs amount to a third of the company's workforce.
Orckit facilitates telecommunication providers' delivery of high capacity broadband residential, business and mobile services over wireline or wireless networks.
Orckit also announced that CFO Uri Shalom was appointed VP business development, as of July 1, and that president Izhak Tamir has assumed the post of acting CFO, until a replacement is hired.
Tamir said, "It has been difficult so far to attract new equity investments. Therefore, we have decided to take the responsible step of materially reducing expenses, while maintaining the manpower and expertise required to continue to develop our key products, support our existing customers and advance our relationships with global original equipment manufacturers (OEMs)."
Orckit's share price fell 7.2% in morning trading on the TASE today to NIS 0.72, after closing at $0.18 on Nasdaq yesterday.
Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2012
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