Retail supermarket chain Shufersal Ltd. (TASE:SAE) is implementing its strategic plan after reporting heavy losses.
In a letter to staff, employees were informed that the salaries of senior management would be cut by 10%, backdated to July 2014, for 12 months. Shufersal is also cutting salaries of all employees earning over NIS 9,000 per month by 5% from August 2014 for 12 months. All employees are also being asked to forego two days of vacation.
Shufersal CEO Yitzchack Abercohen said that the plan includes sweeping and major measures with salary cuts aimed at returning the chain to growth and preventing continued erosion in its financial results. The plan includes cutting hundreds of jobs and head office is already gearing up for major changes which will involve dozens of employees being laid off.
Shufersal said, "As part of the company's new work plan, which includes reducing expenses, it was decided to reduce salaries, and staffing levels in head office which will subsequently be implemented."
Published by Globes [online], Israel business news - www.globes-online.com - on September 3, 2014
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