(Nasdaq:ECIL) is cutting all flab in order to avoid cutting more jobs, TheMarker.com has learned.
After firing 1,400 people this year, the company is trimming the employment terms of the people it kept. Among other things, it is decreasing paid vacation time by 3 days a year, abolishing provision of social benefits during absences, paring cellphone calls to a bare minimum, and reducing the number of sick days if will pay without a doctor's note from four days to two.
The company is also expanding previously announced tightly targeted cutbacks to all divisions. For instance, workers earning more than NIS 8,000 a month will no longer be eligible for free daycare. Moreover, there will be no bonuses paid at all this year, and overtime is also reduced to an essential minimum.
The efficiency measures touch all divisions from May 13. At the end of the year, ECI will re-evaluate its situation and may reinstate some of the perks.