Nir Zuk’s Esh Group cuts staff following Isracard transaction
Dozens laid off as company adapts to post-sale reality.
The Esh Group, led by Nir Zuk, has begun a round of layoffs in recent days involving dozens of employees at its technology company. The move comes against the backdrop of the signing of a deal to sell Esh Bank to Isracard, at a valuation estimated at NIS 400-500 million (approximately $120-150 million). The technology company itself was not included in the sale to Isracard, although it is clear that the acquisition is expected to have at least an indirect impact on the company’s future operations.
According to sources familiar with the matter, the cuts are mainly focused on development roles. This is a significant move for an organization that was originally designed to operate with a relatively lean structure, with a workforce not expected to exceed 100 employees, including the technology teams that developed the platform. In other words, the layoffs represent a substantial portion of a workforce that was limited from the outset.
Esh Bank was established as a fully digital bank, without physical branches, relying on advanced technological infrastructure and online services. However, following the sale of the bank to Isracard, a process of alignment now appears to be underway within the group, as it adapts systems and capabilities between the two entities in light of future plans. Another possibility is that the layoffs reflect the maturation of the technology, reducing the need for a large development team.
The Esh Group said: “The technology company eOS is undergoing an organizational restructuring to optimally align itself with technological developments, recently signed agreements, and the customers it expects to serve later this year.”
