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Layoffs underway at Comverse

אוקטובר 6, 2010. Globes

200 employees at Comverse Technology Inc. (Pink Sheets:CMVT.PK) in Israel received letters of dismissal today. A further 200 employees overseas also received letters of dismissal.The layoffs are part of cuts announced by the company in August when the company reported that it was strapped for cash and had a negative cash flow from activities in the first half of 2010.

At the time the company spoke of 400 layoffs, including 200 Israeli employees, as part of $45 million in cuts by the end of 2010.

In addition to the layoffs, Comverse announced that it was selling assets. Since then the company sold property in Ra'anana to George Horesh for NIS 115 million.

Comverse is also seeking a buyer for video and voice recording company Verint Systems Inc. (Pink Sheets:VRNT).

Yesterday, Comverse published its years-delayed full financial reports for 2006-2010.

Desite the company's difficulties, CEO Andre Dahan, who has earned a salary of NIS 4.3 million over the past two years, will receive a golden parachute of NIS 8.8 million when he eventually leaves the company.

Comverse's share price closed at $7.15 in New York yesterday.

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