SafeCharge International Group Ltd (LON:SCH), the LSE AIM-listed provider of payments services, technologies and risk management solutions for online and mobile businesses, has dramatically reduced its employee headcount in Israel today, Finance Magnates has learned.
Knowledgeable sources have confirmed to Finance Magnates that about 10% of SafeCharge’s workers in Israel were just permanently let go. The downsizing was across the firm and not focused on any division in particular, costing the jobs of between 10 to 15 people. SafeCharge has not officially commented on the matter publicly but we know that this move was part of a reorganization process which is being carried out in the name of increased efficiency.
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This development is a bit unexpected considering that the firm enjoyed strong results in the first half of 2016. With adjusted EBITDA for the period comfortably ahead of US$16 million, the directors said in June that they were very confident of the outcome of the full year and therefore expected the momentum to continue. The latest SafeCharge financial results are expected as soon as this week so we might get more updated information on the matter at that time.
Late last month it was revealed that the company’s VP Sales, Meidad Sharon, left SafeCharge to open his own fintech venture, ending six years of senior management positions with the payments services and technology provider.