Title: Cisco will shed 150 to 200 of its employees in Israel today
Source: (see below)
Cisco will announce today that 150-200 employees at the company's center in Jerusalem will complete their work subject to a hearing, Calcalist learned. In addition, the company will announce to 150 additional employees its intention to transfer them to the Indian company L&T, as part of the process of outsourcing some of the Center's activities.
The process of layoffs revealed by Calcalist recently is part of the trend of reducing the Jerusalem center, which deals with information security and the video field for cable and satellite companies. After the layoffs and the transfer of employees to the L&T, about 650 people will remain in the center.
Cisco's Jerusalem Center was founded on the basis of the acquisition of NDS in 2012. The latter was established in 1988 by ten scientists from the Weizmann Institute, who developed advanced encryption technology that was conceived by Israel Prize laureate Prof. Adi Shamir. A decade later, NDS was sold to Rupert Murdoch by $ 15 million and later floated on Nasdaq, and in 2012 Cisco bought it for $ 5 billion, having estimated its sales turnover at $ 1 billion.
Since entering Israel, Cisco has acquired 13 Israeli companies for a total of $ 7 billion. Although the most significant acquisition was by NDS, at the time of the acquisition, the company was no longer under Israeli ownership, but with a broad base of activity in Israel. In addition to this acquisition, in 2016 the company made significant acquisitions of a semiconductor company, which developed communications chips for $ 320 million and CyberCloud for $ 300 million.
Cisco has realized that a significant portion of its activities are aimed at a shrinking market: there is a growing need for cryptographic technologies for television and satellite services. In addition, it has been claimed that Cisco has not been able to justify the acquisition of NDS since it was carried out (and until the Mobily deal, it was the largest acquisition of a start-up in Israel).
Since 2012, the center has undergone a number of changes and changes: most of the senior NDS executives have retired, including veteran CEO Abe Peled, operations manager Rafi Kasten, and senior technology expert Yuri Feldman, who knows that she has talented people and tries to integrate them into other activities, Economic growth is more pronounced, for example, significant growth engines such as data security and video.
Cisco also has a place to grow in the Israeli market: At the beginning of the year, the US giant won a large IDF server tender for a period of five years, estimated at NIS 1 billion, and continues to provide various services to government offices and other government agencies.
URL: https://www.calcalist.co.il/markets/articles/0,7340,L-3714927,00.html