HP-Indigo, which has over 2,500 employees in Israel, has extended their Passover vacations to over two weeks. This amounts to a loss of three working days; the company will not work at all during the week in which Passover falls, although the holiday actually begins on Thursday. The measure doubles the vacation days that HP-Indigo's employees are forced to take; they will have to take six days, instead of three. The company is also likely to cancel its holiday gifts to its employees.
HP-Indigo said, "Like every year, as a corporation, HP and all of its branches go on vacation, according to the appropriate dates in each country. In Israel, this vacation takes place on Sukkot and Passover." The company did not comment on holiday gifts for its employees.
HP-Indigo, located in Kiryat Gat and Rehovot, is one of Israel's largest exporters. The digital printing developed by the company makes it possible to print various items in small series: photo albums, greeting cards, calendars, stationary, souvenirs, labels, etc. HP-Indigo's annual sales are in excess of $1 billion, but the company does not release the exact amount, because it is not significant activity for it. HP-Indigo has not employees in China, and as far as is known has no substantial manufacturing there. A company sources said that as of now, it expected no inventory problem as a result of the coronavirus. At the same time, HP-Indigo has customers in Asia, and this activity is likely to affected by the virus.
HP-Indigo's extension of its employees' vacations is taking place simultaneously with worldwide cutbacks by HP. HP announced in October 2019 that it was cutting its staff by 7,000-9,000 employees, amounting to 16% of its 55,000 global work force, through layoffs and voluntary retirement. HP's announcement did not mention specific geographic areas, and the effect of the measure on Israel, where HP has over 3,000 employees, is unclear.
Shortly after the announcement, Xerox Holdings filed a takeover bid for HP, even though Xerox's market cap is $7.5 billion, compared with HP's $32 billion market cap. HP stated that the offer was too low. HP announced this week an unprecedented $15 billion buyback of its shares, including $15 billion this year, in order to thwart Xerox's takeover bid.
Published by Globes, Israel business news - en.globes.co.il - on February 25, 2020
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