Tidhar Announces Layoffs and Restructuring Four Months After IPO
Translated & summarized from Globes by baba
Real estate developer Tidhar announced a headquarters restructuring including layoffs and division mergers, aiming to save NIS 30 million annually. The move follows the company's IPO four months ago, after which it paid out NIS 56 million in employee bonuses. CEO Ori Levin called the decision difficult but necessary for strategic implementation.
The story in 5 lines · by baba
- Tidhar announced a headquarters restructuring involving layoffs and division mergers.
- The company expects the restructuring to save approximately NIS 30 million annually.
- The changes come four months after Tidhar's initial public offering in June.
- Tidhar awarded employees about NIS 56 million in bonuses following the IPO.
- CEO Ori Levin described the decision to part with employees as difficult.
Tidhar, led by CEO Ori Levin, announced a significant restructuring of its headquarters on Sunday. The move will involve employee layoffs, the merging of divisions, and a reduction in management layers. The company estimates that the full implementation of these changes will result in annual savings of approximately NIS 30 million.
As part of the reorganization, the management and planning division will be merged into the initiative division, and other headquarters units will be consolidated. Tidhar stated that the objective is to reduce redundancies and personnel, streamline work processes, and enhance coordination across its operational areas. The company also indicated that these changes align with its presented strategy and plans, and that the organizational structure will be adapted to support planned growth.
The cutbacks come about four months after Tidhar's initial public offering on the Tel Aviv Stock Exchange in June. Following the IPO, the company awarded its employees approximately NIS 56 million in cash bonuses. These bonuses, along with grants to controlling shareholders and other expenses totaling around NIS 75 million, were part of the overall IPO costs and impacted the company's net profit in the second quarter.
Levin commented that the restructuring aims to simplify the group's structure and support the execution of its strategic plan. Regarding the departing employees, he stated, "This is not an easy decision that includes parting with good and valued people." Tidhar operates in the fields of real estate development, construction, and income-generating properties. The company raised approximately NIS 1.7 billion in its IPO, with NIS 1.5 billion going into the company's coffers and the remainder paid to selling shareholders.
