Gilat Communications fires 50 workers

Company explains that it is restructuring its staffing requirements as it shifts development from satellite to Internet products
Author:
Publish date:

Gilat Communications

(Nasdaq:GICOF) has recently fired 50 of its employees, half of them in Israel and half in the United States.

CFO Eytan Mucznik said that the lay-offs were necessitated by the company's decision to focus on developing remote Internet-based e-learning products, at the expense of developing remote, satellite-based e-learning services.

Mucznik said that the fired employees came from the operating and development divisions. "Our satellite-based product has reached maturity, and at this point we decided to put our efforts into Internet-based products," Mucznik explained. "In addition, over the coming year Gilat intends to strengthen its sales and marketing network in the United States, and to take in 20 additional workers. To finance this growth, we had to lay off some of the employees."

Gilat Communications was split off from

Gilat Satellite Networks

(Nasdaq:GILTF). The company, which employs 800 workers, focuses on satellite-based communication services and on setting up e-learning communication networks.

Some of Gilat's difficulties stem from internal reorganization problems following the acquisition of American companies

LearnLinc

and

Allen Communications

. These two companies, together with Tel Aviv-based

John Bryce Training

, acquired by Gilat a year ago, were intended to be integrated as an e-learning unit.