Sources inform ''Globes'' that Dekolink Wireless Ltd. has initiated streamlining measures, which include outsourcing some activities and the firing of 20 people. According to IVC Online, the company had 80 employees at its Petah Tikva premises, indicating that a quarter of its staff was fired.
The layoffs are further indication that the shekel's appreciation is beginning to take a toll at high-tech companies. Until a few months ago, companies preferred to try to ride out the storm, hoping for a turnaround in the exchange rates. However, they are now being forced to take painful decisions and wield the axe, and employees are the first to get hurt.
Dekolink was spun off of Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) unit Elisra Group in 2002 with the goal of applying Elisra's military technologies for the cellular market.
Most of Dekolink's sales are in the US market, and the 30% drop in the shekel-dollar exchange rate over the past 18 months has severely hurt the company, forcing it to adjust to the new reality.
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2008
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