Bezeq Israel Telecommunications Company Ltd. (TASE:BZEQ) Internet and international calls unit Bezeq International is to lay off 50% of its workforce. An estimated 300 tenured employees will lose their jobs as well as an additional 250 non-tenured employees. Sources have told “Globes” that Bezeq’s board of directors will convene today to approve the plan after which the company will notify the Tel Aviv Stock Exchange (TASE). Bezeq International will set aside a significant sum of money in its next financial report.
Bezeq International had been due to launch a voluntary retirement plan last quarter but it was delayed, probably pending approval by the board of directors. The final signature on the streamlining plan is expected after the holidays later this month.
Bezeq’s mobile phone unit Pelephone will also soon launch a streamlining plan with some 150 employees volunteering for early retirement.
The layoffs at Bezeq International are due to the closure of the Internet Service Provider (ISP) division for private customers, following the Ministry of Communications decision to cancel the split between Internet infrastructure providers and ISPs. As a result subscribers will receive all Internet services as one product from one company – mainly Bezeq and Hot.
Bezeq International’s business unit will continue operations as an independent unit and deepen its activities in the sector.
Bezeq International CEO Ilan Sigal has succeeded in bringing the employees and Histadrut around the negotiating table on the matter.
Published by Globes, Israel business news – en.globes.co.il – on October 3, 2022.
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