Israel Chemicals Ltd. (NYSE: ICL; TASE: ICL) president and CEO Stephan Borgas is threatening to fire 500-600 employees in Israel, following the Sheshinski 2 Committee recommendations, while increasing the company's overseas investments in the coming quarters.
"We'll cut our workforce in Israel by 10-12% in the next three years," Borgas told Reuters yesterday on the occasion of the publication of the company's financial results.
The cabinet and the Knesset are discussing the Sheshinski 2 Committee's recommendations, and Israel Chemicals is trying to pressure the cabinet to soften the conclusions calling for an increase in the government's take from natural resources, although the conclusions were already moderated, in comparison with the Committee's interim report.
The Israel Chemicals workers committee has already begun to implement sanctions against the company's planned layoffs. Borgas said today that he expected actions by the workers during the fourth quarter.
Borgas added that he expected a rise in potash prices next year, but a drop in the quantity sold.
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2014
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