Tidhar Real Estate Group Lays Off 30 Employees, Merges Divisions
Translated & summarized from TheMarker by baba
The Tidhar real estate group is laying off approximately 30 employees and merging several divisions as part of a restructuring effort. The company stated the move aims to reduce redundancies, streamline operations, and improve coordination, projecting annual savings of 30 million shekels. These changes come after Tidhar's IPO in June, which raised 1.7 billion shekels. CEO Uri Levin described the layoffs as a difficult decision involving valued employees.
The story in 5 lines · by baba
- Tidhar Real Estate Group is laying off about 30 employees and merging divisions.
- The restructuring aims to reduce redundancies and streamline operations.
- The company expects annual cost savings of approximately 30 million shekels.
- The layoffs follow Tidhar's IPO in June, which raised 1.7 billion shekels.
- CEO Uri Levin called the layoffs a difficult decision involving valued staff.
The Tidhar real estate group announced on Monday, October 12, a significant workforce reduction affecting various management positions. Approximately 30 employees will be laid off as part of this restructuring. Additionally, the management and planning division will be merged into the initiative division, and other headquarters units will be consolidated. According to Tidhar, led by CEO Uri Levin, the move aims to reduce redundancies and personnel, streamline work processes, and enhance coordination across its operational areas. The company, controlled by Gil Geva, Aryeh Becher, and Mark Weissman, stated that these changes align with its presented strategy and plans, adapting the organizational structure for projected growth. This initiative is expected to result in annual cost savings of around 30 million shekels.
These layoffs follow Tidhar's initial public offering (IPO) in June, where the company raised approximately 1.7 billion shekels, with about 1.5 billion shekels going into the company, at a post-offering valuation of 8.1 billion shekels. Following the IPO, Tidhar distributed 56 million shekels in cash bonuses to its employees. The total IPO expenses amounted to 75 million shekels, including bonuses for controlling shareholders and other costs, which negatively impacted the company's net profit in the second quarter. Tidhar's current market capitalization stands at 7.43 billion shekels, a 2.3% decrease. Levin commented that the reorganization is intended to simplify the group's structure and support the execution of its strategic plan. He acknowledged the difficulty of the decision, stating it involves parting with "good and valued people."
