The layoffs follow the acquisition of Genieo Innovation as the two companies merge.
Just two weeks after software company Somoto Ltd. (TASE: SMTO) acquire Internet company Genieo Innovation for $34 million, the company has announced that it is reducing operational costs. The company said it is firing 15% of its workforce of 86 employees, in other words 13 employees in Israel will lose their jobs.
The layoffs are result of the synergy between the two companies and a relatively reduced use of their combined workforces. Somoto seeks to reduce overheads for routine operations by 20% and is doing so mainly through layoffs. The company does not expect these measures to influence its business strategy.
Somoto CEO Ben Garrun said, "The synergy between the two companies and the technology infrastructures of Genieo allows us to reduce Somoto's operational costs including salary costs and other operations. This step aims to continue growth of the merged company while doubling revenue and creating significant profit."
Published by Globes [online], Israel business news - www.globes-online.com - on August 6, 2014
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