Intercomp, a member of the


(Nasdaq:FORTY) group, has fired a third of the workers at its R&D center in Israel, but it is expanding its center in Romania. Israeli employees are, simply, more expensive.

Intercomp has 75 people working in Israel and Romania.

Intercomp CEO Eran Tirer confirmed that ten out of the R&D center's 35 workers were laid off. Meanwhile, the Romanian branch opened in last October is planned to expand from 35 to 50 people.

But Tirer stated that the company has no plans to abolish its Israeli center.

"We have decided to cut back development and expand marketing and sales. We have enough cash but have had to trim down, like many other companies," Tirer said.

He added that the company hopes to achieve balance at year-end.

Tirer co-founded Intercomp at the end of 1997. The company focuses on legacy computer systems for IBM mainframes and converts Cobol to Java for financial customers.