About 250 of the 600 employees of homeland security company Logic Industries are to be fired in the coming weeks as part of a new business strategy announced by the company's leadership. A top executive at the company said, "We'll do things in the most dignified way that the market knows, from the point of view of sensitivity and the financial packages that the employees leaving us will receive, while helping them find new employment."
The source added, "Due to the success of our projects in the past, we have decided to make a special budget of NIS 35 million available that will be dedicated to increasing severance grants from the company in a differential way that will take into account the contribution of the employee to the company and the degree of success of the project in which they were involved."
The chairman and CEO of Logic Industries is Maj.-Gen. (res.) Amos Malka served as head of the IDF Intelligence Corps and the owner is businessman Mati Kochavi. The company is based in the Yakum Euro Business Park south of Netanya and over the past eight years most of its operations have been through one customer in the Persian Gulf.
Towards the end of 2015, Logic's connection to the main customer in the Gulf will end and the company has therefore decided to reduce its work force by 40% and adapt the company to a new business structure formulated in the past few months. The senior source said that, "The company is profitable and financially strong."
Persian Gulf customer
The source said that logic industries was originally set up to undertake a range of ventures for the main customer in the Persian Gulf.
The projects related to smart cities and security for sensitive installations in which advanced command and control systems were installed using intelligence for law enforcement. In the past year, the senior source told "Globes" today, with the expected completion of Logic's operations in the Persian Gulf country, the company has expanded operations around the world to India, Uzbekistan, Switzerland, Singapore, China, Kazakhstan and Germany.
Logic said that as part of these efforts, the company was awarded a contract to act as a services consultant for security solutions in managing 130 electricity installations in Western Europe, building a command and control system for securing industrial sites for a large Asian corporation and more. "We've spoken for a number of months about the day after activities with our main customer end and formed a plan that will make the company that encompassed employee intensive projects into a company employing products and solutions that are aggressively promoted on international markets. For this, the company is also building a new sales network that will promote the products. These are new products alongside the products on which the ventures we led were based in recent years."
"One of the things we are leveraging is the unprecedented experience we have gained with our main project over the past eight years, and an additional leverage, is the large demand for security products."
As part of the company's restructuring, it is also expected to operate in the Israeli market - in the field of smart city systems.
With the completion of Logic's operations in the Persian Gulf, maintenance of the systems and infrastructures managed there in the past few years will be transferred to another company in the AGT Group, which is also owned by businessman Mati Kochavi.
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2015
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