The number of employees at Comverse is expected to shrink further, this time as a result of strategic cooperation agreement with Indian IT service company Tech Mahindra.
As part of the agreement, up to 570 workers from Comverse’s Digital Services Department will be transferred to Tech Mahindra. Comverse noted that the affected workers are primarily from Israel, the US, Europe, and a number of Asia-Pacific countries. This announcement comes just one month after Comverse Israel employees unionized under the Histadrut (General Federation of Labor in Israel). The Histadrut said that talks are being held between the workers’ committee and management on the matter.
Following the agreement with Tech Mahindra, Comverse has announced a new organizational plan that is expected to include a cut in manpower, and which is to be completed in January 2016. The company estimates that the cost of the program will be roughly $10-12 million, primarily in severance pay.
Just a few months ago, Comverse completed a round of layoffs, which included 350 workers (14%), most of them in Israel. Prior to the last round of layoffs, Comverse had 2,500 employees.
Published by Globes [online], Israel business news - www.globes-online.com - on April 15, 2015
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