Tidhar Group Lays Off Dozens After Founders Become Billionaires
Translated & summarized from Ynet by baba
Israeli real estate firm Tidhar is laying off dozens of employees as part of a broad efficiency plan, just four months after its successful IPO that made its founders billionaires. The company raised 1.7 billion shekels in its IPO and distributed significant bonuses and dividends. Despite recent financial growth, Tidhar aims to save 30 million shekels annually through these cuts. CEO Uri Levin called the decision difficult but necessary.
The story in 6 lines · by baba
- Tidhar Group is laying off dozens of employees as part of an efficiency plan.
- The layoffs occur four months after the company's IPO, which made its three founders billionaires.
- The efficiency plan aims to save the company approximately 30 million shekels annually.
- Tidhar raised about 1.7 billion shekels in its IPO and recently distributed large bonuses and dividends.
- The company reported financial growth but its stock has underperformed since the IPO.
- CEO Uri Levin described the decision to lay off staff as difficult.
Just four months after its major stock market debut, which turned its three founders into billionaires, Israeli real estate group Tidhar announced a broad efficiency plan. The plan includes layoffs, reducing headquarters operations, and cutting management layers. While the company did not specify the number of employees affected, estimates suggest dozens will lose their jobs.
The announcement follows Tidhar's successful IPO, which raised approximately 1.7 billion shekels and valued the company at about 8 billion shekels post-money. Following the offering, the stakes of co-founders Gil Geva, Arie Bachar, and Mark Weissman were each estimated to be worth between 1.5 to 1.9 billion shekels.
Despite the significant capital raised and substantial bonuses distributed to employees, controlling shareholders, and directors totaling over 60 million shekels, Tidhar is now implementing workforce reductions. The company also distributed a 250 million shekel dividend in September, with about 147 million shekels going to the three founders.
Tidhar stated the efficiency program aims to reduce general and administrative expenses and strengthen control over its residential development and income-generating real estate activities. The company anticipates the plan will yield annual savings of about 30 million shekels, a reduction of approximately 3% in administrative costs compared to the previous year.
This move comes despite Tidhar reporting a 10% increase in revenues to 1.64 billion shekels and a 36% jump in adjusted net profit for the first half of 2026. However, Tidhar's stock has struggled since the IPO, yielding only about 0.43% year-to-date. The company's stock saw a slight increase of about 1% following the announcement, trading at approximately 148 shekels, down from its IPO price of 155 shekels.
Uri Levin, CEO of Tidhar Group, acknowledged the difficulty of the decision, stating, "This is not a simple decision that includes parting with good and valued people, whom we thank wholeheartedly for their significant contribution to Tidhar over the years."
