Bezeq to restructure; retire up to 2,200 staff, papers say

5 Dec 2006

Israel’s fixed line incumbent Bezeq (Israel Telecommunication Corporation) has revealed plans to overhaul its operating structure and offer retirement to 2,200 employees by 2013 in a bid to save around ILS350 million (USD83 million) annually, according to local newspaper Globes. The changes will include eliminating two of the company’s ten divisions, and restructuring the reminder into three operating units headed by deputy CEOs. Bezeq will make a provision of ILS450 million in its 2006 financial report for the retirements. The figure could rise considerably if the option is exercised in full. Bezeq CEO Yacov Gelbard told Globes: ‘There will be two stages of retirements from 2006 through 2008, in which 1,000 employees will retire. There is an option for the retirement of 1,200 more employees between 2009 and 2013, but this… will depend on the company needs at the time.’ The news comes as Bezeq agreed to distribute an ILS1.8 billion dividend to its shareholders, taking its total payouts to ILS3.7 billion in the 18 months since the company was privatised.

Israel, Bezeq (Israel Telecommunication Corporation)