Israeli credit card company Isracard Ltd. (TASE: ISCD) announced today that it will lay off 200 employees by the end of 2021. This number includes 100 employees who are part of the company's collective workforce agreement and who will take voluntary retirement on beneficial terms of compensation of up to 200% of what they are owed by law, and 100 people working for outsource companies or on individual contracts.
Isracard is also halting one of its main technology projects, for which it hired computer systems company Temenos, for upgrading its customer credit management system. The decision comes as part of a new plan for broader strategic change. The change in direction comes as Tamar Yasour is set to take over from Eyal Desheh as chairperson. As a result of halting the project, Isracard will write off NIS 67-71 million as a one-time expense (before tax) in its 2020 financial report.
The cost of the voluntary early retirement program will be NIS 35-45 million. After the plans completion, Isracard will make an estimated NIS 45-50 million in annual savings.
Isracard CEO Ron Weksler said, "The streamlining measures and the voluntary retirement plan that we have announced today are part of a broad strategic plan for change in the Isracard Group. As part of these changes, we are entering even more into digital payments, the sale of insurance products, and advanced financial services. It is clear to us that dealing with the company's expenses is crucial and needed and we will continue to work on the subject. Isracard's management is working in cooperation with the employees representatives in order to lead change by agreement for the benefit of all those involved in Isracard - the shareholders, the employees, suppliers and customers."
Published by Globes, Israel business news - en.globes.co.il - on December 30, 2020
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