Cellebrite refunding employees for four months of Covid-19 cutbacks
Employees had their pay checks reduced during the first wave of the pandemic and after already canceling the cuts last month, the digital intelligence company will now also be paying back a one-off sum to cover lost salaries
Israel-based digital intelligence company Cellebrite Mobile Synchronization Ltd. notified its 700 employees on Thursday that they would receive a refund for the salary cuts they were handed due to the Covid-19 crisis. Cellebrite employees had their pay checks reduced during the first wave of the coronavirus pandemic in Israel and after already canceling the cuts last month, the company will now also be paying the employees a one-off sum to cover their lost salaries between May and August. Cellebrite didn't reveal how much money it will be paying back its employees, but it is believed to be in the region of several millions of shekels.
"During April, and on the back of the expectation of a potential drop in deals and budgets for new projects in the subsequent quarters, we cut salaries for the entire workforce, including managers and the senior management," said Cellebrite CEO Yossi Carmil. "It was a preventative move that we took not out of distress but with a responsibility to the future of the company and its continued growth. We did it out of concern for its employees and the wish to avoid layoffs, and with the recognition that it was a step that would allow the company to continue to promote innovation and serve its 7,000 customers, as it has in the past, until the crisis is over.
Cellebrite CEO Yossi Carmil. Photo: Shlomi Yosef
"During the entire pandemic, Cellebrite has kept its entire workforce and we ended the third quarter of 2020 in a very good situation, with a 20% growth in sales and meeting all our original targets for 2020 in regard to profitability and growth. Cellebrite's employees displayed during this recent period true dedication and partnership regarding the company’s future and that is one of the reasons why I'm certain that we can conquer the digital intelligence market in the coming years per our strategic plan."
As a result, the company canceled all cuts as of September 1 and is now also returning the amounts deducted from salaries between May and August.
Founded in 1999 and based in Israeli central town Petah Tikva, Cellebrite specializes in mobile forensics. Its technology is used for mobile data extraction by law enforcement, intelligence agencies, military entities, law firms, and security firms. In June of last year, Calcalist reported that mobile data and entertainment company Sun Corporation has sold a 25% stake in Cellebrite to Tel Aviv-based Israel Growth Partners (IGP) Ltd. for $110 million. In January of this year, Cellebrite acquired San Jose, California-based forensic analytics company BlackBag Technologies Inc. for $33 million.