ECI Telecom Ltd. may fire 100-200 employees after Passover as part of another restructuring. The company also plans to open a new R&D center in the south, for which it will hire dozens of employees.
ECI employees are currently on vacation over the week-long Passover holiday. The company ordered employees to use their vacation days over the holiday, in contrast to its policy in previous years.
ECI, owned by Swarth Group, an investment vehicle controlled by Shaul Shani, said in response, "As part of the company's preparations for the challenges it faces in 2009 and in subsequent years, it plans to increase its investment in R&D, sales, and customer support. At this time, management is considering implementation of its internal work plan, which will accompany its growth engines in the future."
ECI's intention to make more layoffs has angered employees. One employee said, "In the building's lobby is a TV screen that displays the names of new employees, and we recently saw 20 names there. Management is now hiring cheap new labor, while kicking out more expensive employees who have seniority."
The employee added, "It is especially infuriating that management asked employees to extend their Passover vacation and use accumulated vacation time, since now fired employees will receive compensation for fewer vacation days as part of their severance pay."
Published by Globes [online], Israel business news - www.globes-online.com - on April 12, 2009
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