Elbit sends dozens of workers home
Defense electronics manufacturer's statement in recent court claim reveals plans for further streamlining. 'We're gearing up for the market challenges ahead,' company says
Details of the reorganization procedure have been disclosed in a recent statement of defense submitted by the company to the Tel Aviv Labor Court in response to a court claim filed by an employee who was dismissed last February.
The statement indicates that the company is preparing for further downsizing activities.
The defense electronics manufacturer notes in the statement, made available to Calcalist, that it is currently examining its "clients and downsizing of the workforce in our different business divisions."
The company explained that the 2010 crisis had a heavy impact on global defense budgets which changes the circumstances in the company's target markets.
The US defense market – the company's principle market – was hit by the crisis and many pipeline projects were canceled or postponed due to the pullout from Iraq and Afghanistan, said Elbit.
"These global trends forced us to streamline our activities to better position ourselves to deal with the challenges which lay ahead in order to be able to deal with the fierce competition in the defense world," Elbit wrote in its statement of defense.
As part of the said preparations, Elbit made several reorganizational moves in its workforce. Such steps were called for also because of the company's recent series of acquisitions which require the removal of duplicate positions.
Elbit ended the third quarter with a 2% hike in revenue, stemming mainly from its activity in C4 and airborne systems.
Elbit said in response to this report, "Every year Elbit adjusts its workforce as per the working plans of its various divisions. This year as well, the company made several organizational changes, aiming to better position itself for the market challenges ahead."
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