Isracard is preparing for 200 layoffs, about 14% of the total number of employees

Isracard is preparing for the official inauguration of Tamar Yasur as chairman of the company, and is cleaning stables: Today the credit card company announced that the company's board of directors decided yesterday to stop a project to improve and upgrade a customer credit management system (core credit system) it made together with Temanos. Ron Wexler decided to stop the project and move to self-development of basic components in the project. The company claims that the change in the project will reduce costs compared to the continuation of the project in its current form. But the termination of the project also has costs, and Isracard states that following the decision they will make a provision. NIS 71 million before tax.

At the same time, the company also announced an efficiency plan to cut 200 jobs, which is about 14% of the total number of jobs in the company (as of the end of 2019), of which 100 temporary workers or those on a personal contract, and another 100 workers in the collective agreement. The voluntary retirement plan will be offered to employees with over 4 years of experience with increased compensation of 200%. The cost of voluntary retirement will be NIS 35-45 million before tax. The company estimates that this streamlining will lead to a reduction of NIS 40-50 million in annual expenses. The efficiency plan will be completed by the end of 2021.
Isracard, managed by Ron Wexler, is a company without a controlling interest. The company is expected to undergo changes in the near future, following the change in the composition of the board of directors and the expected entry into the position of new chairman Tamar Yasur.
Wexler said today: "The streamlining measures and the voluntary retirement plan we announced today are part of a broad strategic plan to change the face of the Isracard Group. As part of these changes, we are entering more into digital payments, selling insurance products and advanced financial services. It is necessary and necessary, and we will continue to work on the issue. "