TeleKnowledge firing half of its 120 workers - TheStreet

TeleKnowledge is to lay off half of its 120 workers in its third wave of dismissals. At its peak, the company had 200 workers.

The firm's new CEO, Ofer Segev, confirmed that the company is today dismissing scores of workers. He added that the layoffs in fact complement the company's reorganization, which began several months ago. He said that the company is undergoing complete reorganization, which involves changing the business activity focus from the telecom market to the content market, where the firm has the potential of becoming a leading player, and not just another player. Segev said that the company is planning to reach profitability in the third quarter of this year.

The change in focus necessitated cutting the workforce, Segev said, adding that the cuts will not affect customer service.

TheMarker reported at the beginning of the week that co-founder, President and CEO Oren Glanz has resigned. It is estimated that Glanz stepped down because of differences of opinion with the board. The board was apparently opposed to an external investor entering the company. The investor was expected to invest $15 to $20 million.

Segev said that the company had considered the entry of an external investor, but this was not carried out. He denied that Glanz's resignation had anything to do with this. Segev said that the job cuts would have been effected even if the investment had taken place.