Chromatis Networks is in trouble, reports Yedioth news website

Ynet

. Chromatis was sold to

Lucent Technologies

(NYSE:LU) in May 2000 for $4.8 billion, in the biggest-ever deal recorded in the history of Israeli hi-tech.

Ynet learned that this week the Chromatis executive, headed by Orni Petruschka, held a general staff assembly and announced that the company is fighting for its life.

Although the global Lucent group is making deep staffing cuts, no layoffs are planned as of now. But the startup will be cutting worker benefits, such as vacation, the management said.

Chromatis declined to comment, saying only that although it feels the hi-tech crisis, it is in better condition than its peers.

Lucent has come under investor pressure as its business slumped. The company might have been expeted to hurry to announced business and technological coups. But it hasn't said a word about Chromatis.