Israeli defense powerhouse IAI to stunningly lay off 900 workers
CEO resigned, workers union promised to battle the decision
Earlier on Wednesday, Nimrod Sheffer, the company’s CEO announced his resignation after only two years at the helm of the company. He is expected to be replaced by deputy CEO Eyal Younian.
IAI is Israel’s largest aerospace and defense company specializing in developing and manufacturing advanced weapons and defense systems for air, space, sea, land, cyber and homeland security. It employs around 15,000 people in its offices around the country.
The report on the planned layoffs faced a strong backlash from the strong IAI workers union. “Management wants to shut down production lines that are neither profitable nor unprofitable in order to meet profitability goals. The entire world is tightening its belt and IAI has sufficient resources to wait out the coronavirus crisis without sending its workers out to starve in a job market that offers them no alternatives. The union agreed to have employees put on unpaid leave at the height of the outbreak, but we will not permit layoffs,” said union chairman Yair Katz. “The company entered the crisis financially sound and these layoffs are unjustified. We will employ unparalleled measures to prevent them.”