Comverse Technology (Nasdaq:CMVT) (CMVT) today began the process of cutting about 850 jobs, on top of the 371 terminated in April this year. The Israeli technology company is keeping the promise of chief executive Zeev Bergman to help dismissed employees, who will each be eligible for at least three months' salary, TheMarker.com has learned.
The customary severance compensation in Israel is one month's salary. The extra compensation will be determined as a function of seniority, but will in any case be equivalent to two or more months' salary.
The gesture toward the newly dismissed employees will generate hefty one-time charges for Comverse, which hopes to complete the painful process within two weeks.
Half the job cuts from its total workforce of 5,500 will be from Comverse's Israel facility.
Comverse will be publishing its third-quarter financial statement on December 11. It announced on October 24 that it expects quarterly revenues of $295 million, down 10.6% from its previous guidance. It also said it expects earnings per share of 11 cents, compared with an earlier estimate of 20 cents.