CAL expected to cut up to 220 jobs after losing El Al’s FlyCard franchise
The credit card company is considering a workforce reduction of 10% to 15% as it grapples with the loss of one of its most profitable customer franchises.
Following the loss of El Al’s FlyCard Club franchise to Isracard earlier this year, CAL is expected to launch a streamlining program that could include a workforce reduction of approximately 10% to 15%. As of the end of 2025, CAL employed approximately 1,486 people, implying a potential reduction of roughly 150 to 220 jobs.
The loss of FlyCard is considered a significant blow to CAL. The club, which has more than half a million cardholders, is considered one of the most profitable and powerful franchises in Israel’s credit card market, thanks to the exceptionally high spending and transaction volumes of its members. In response to the loss of the franchise, CAL launched the competing FlyAll club in an attempt to retain some of its airline and premium customers. However, market estimates suggest that FlyAll is unlikely to replicate FlyCard’s scale, either in activity or customer numbers, in the foreseeable future.
The repercussions come at a particularly sensitive time for CAL. The company is in the midst of a sale transaction in which Discount Bank is selling its entire stake in CAL to Union Group, controlled by George Horesh, together with Harel Investments. The expected impact of the FlyCard loss on revenue, combined with the need to reduce operating costs, is putting CAL’s profitability under pressure at a critical point in the company’s ownership transition.
CAL declined to comment on the expected workforce reduction. In response to a query, the company said: “As part of normal business processes, we regularly examine the company’s costs and expenses. At this stage, we are focused on continuing FlyAll’s growth and are investing significant resources in this.”
