Early retirement of workers to slash Bezeq’s 2018 profit

The logo of Bezeq Israeli Telecommunication Corp Ltd, the country’s largest telecom group, is seen outside their headquarters in Tel Aviv, Israel June 21, 2017. REUTERS/Amir Cohen

TEL AVIV (Reuters) – Bezeq Israel Telecom said on Monday its board approved an expense of 512 million shekels ($136 million) for a cost-cutting plan that will include the early retirement of 337 workers.

This expense would be in addition to 90 million shekels it set aside in the first and second quarters of 2018 for early retirement, Israel’s largest telecoms group said in a statement.

In total these expenses are expected to reduce 2018 net profit by 464 million shekels, Bezeq said.

Last month, Bezeq had reiterated a 2018 forecast for net income of 1.0 billion shekels.

Reporting by Tova Cohen; Editing by Steven Scheer

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