"Home prices driving tech workers overseas"
ECI chairman Rafi Maor says the company is transferring some operations to lower cost regions like India and China.
ECI Telecom Ltd. has announced that it is firing 200 employees, half of them in Israel.
ECI chairman and acting CEO Rafi Maor said, "The global communications market is undergoing a dramatic change and is influenced by the current global economic situation, and the aggressive entry of giant Chinese companies that have created a new level of low prices in the industry and as a direct result a model of business activities with low profitability."
All communications companies worldwide are forced to fire tens of thousands of employees and transfer activities in a massive way to regions with competitive operations costs - mainly India and China.
"In the past year, we began to see signs of recovery and ECI revenue rose 15%, and we presented among the highest growth rates in the market in which we operate."
He added, "So that the company can carry on growing and meeting its targets, and remain a leading Israeli company, there is no alternative but to take streamlining steps and transfer part of our operations to regions with the competitive costs supported in the Negev, India and China."
"ECI has 3,000 employees but regrettably we are forced to part with 100 workers out of the 1,600 employed in Israel, and a similar number employed abroad."
Maor concluded, "This is a painful step but it is required and necessary for ECI's continued growth in the global communications market and maintaining ECI's thousands of employees in Israel and worldwide through whom the company has succeeded in meeting many challenges."
Published by Globes, Israel business news - www.globes-online.com - on May 2, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
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