A reduction in headquarters staff will lower Koor Industries (Nasdaq:KOR) costs by $4 million a year, from $12 million to $8 million in 2002. The conglomerate is also lowering executive pay.
The headquarters consists of eight people headed by chief executive Jonathan Kolber and president Danny Biran.
The salary cuts could also affect directors, including some of Israel's most renowned executives such as Eli Hurvitz from Teva Pharmaceuticals (Nasdaq:TEVA) and Chemi Peres from the Pitango venture capital fund (formerly Polaris).
For 2000 Koor's salary costs on its five top people came to NIS 20 million, including social benefits for previous years and retirement arrangements.
In August Koor reported a second-quarter loss of NIS 700 million, mostly due to writing down its investment in ECI Telecom (Nasdaq:ECIL) by NIS 600 million. Its loss for the first half year of 2001 came to NIS 1.6 billion.