Radwin, a member of the RAD hi-tech group, is dismissing 40% of its staff, TheMarker has learned.

The move will leave Radwin, which is owned by the brothers Yehuda and Zohar Zisapel, 40 staffers.

Zohar Zisapel on Sunday confirmed the cutbacks, and said most would be in the operations and marketing divisions.

He pointed out that the company has sales, and "excellent technology", but that its business environment is very tough. "We have to adjust ourselves to reality," he said

Despite the cutbacks, the company will continue to invest in developing the next generation of products and of components that reduce costs, Zisapel said.

He estimated that Radwin will break even in 2005, until which time the RAD Binat group would continue to maintain it financially.

Radwin, which develops wireless access solutions, was established in 1997. A year ago it raised $8 million from internal group sources. In February 2000 it scored $13 million venture financing according to a post-money company value of $27.5 million. its backers include Japan's Sumitomi and Jafco, as well as a host of Israeli venture capital funds.

If you liked this article you might like

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Yes recruitment rate down to 6,000 a month

Yes recruitment rate down to 6,000 a month

Cadence to invest in Israeli startups

Cadence to invest in Israeli startups

Court grants Mentergy 40-day stay of proceedings

Court grants Mentergy 40-day stay of proceedings

Leader & Co sees Discount shifting to profit in Q3

Leader & Co sees Discount shifting to profit in Q3