The laid-off workers constitute 25% of the company’s staff in Israel. The company is moving its support services to the US.
Israeli start-up company SpearHead has laid off 15 of its 60 workers in Israel, “Globes” has learnt. Israeli branch manager Oded Shoham confirmed the report. He said the layoffs were part of the process of moving the company’s support services from Israel to the US, where the company’s potential customers operate.
Shoham added that most of the laid off workers were support staff, but said that the company also made “minor changes in the development department”, in the framework of a restructuring program made necessary by present conditions.
SpearHead develops security solutions for communications networks.
SpearHead does not have financial difficulties. It has $17 million in cash, having raised $32 million in the course of several financing rounds since late 1998. The company recently completed a $24 million financing round at a company value of $100 million, after money. SpearHead placed11th in the Israeli Fast50 competition that ranks companies based on the growth of their market value.
Published by Israel's Business Arena on 16 April, 2001