The Tidhar Group has announced a restructuring of its headquarters that will include efficiency measures and the dismissal of approximately 50 employees, just four months after its initial public offering (IPO). The move is in line with the strategy and work plans the company presented ahead of the IPO.
According to the company's announcement, the initiative aims to strengthen control over the value chain, sharpen its business focus and improve organizational efficiency. As part of the restructuring, Tidhar will merge divisions, reduce management layers and adapt its organizational structure to support future growth. The announcement also signals the company's intention to demonstrate that it is following through on its commitment to improve efficiency.
Before the IPO, Tidhar employed approximately 1,100 people, most of them in construction and project execution. The planned layoffs will affect dozens of employees, representing around 5% of the group's workforce.
Ahead of the IPO, employees received bonuses totaling NIS 55 million. Now, however, the workforce is set to bear some of the cost of the company's restructuring. Full implementation of the plan is expected to save Tidhar NIS 30 million in annual expenses, according to the announcement.
Efficiency drive and structural changes
As part of the restructuring, the management and planning division will be merged into the development division, with most of its employees set to be laid off. In addition, various units within the group will be consolidated, management layers will be reduced, and further changes will be made to the structure of the company's headquarters.
Tidhar said the measures are intended to streamline work processes, eliminate duplication, reduce headcount, strengthen control over the value chain and enhance synergies across the group's business activities.
Market pressure and slowdown
Tidhar is controlled by Gil Geva, Arie Bachar and Mark Weissman. In early June, the company raised NIS 1.7 billion in its IPO, which included an offer for sale by its owners. Since going public, its shares have declined by approximately 5%.
The efficiency drive comes amid a slowdown in the construction market and pressure from institutional investors, who were persuaded to buy shares in the IPO, to improve the company's performance. Additionally, the advertising campaign that preceded the offering, featuring Niv Sultan and Maor Schwietzer, has also been discontinued.
Tidhar is the first major construction company to publicly announce a comprehensive efficiency drive, a move partly attributed to its status as a public company. Other construction firms prefer to keep similar measures under wraps, fearing they could be seen as a sign of weakness.
Leadership response and strategic goals
Uri Levin, CEO of Tidhar, said: "Tidhar is undergoing an ongoing process of growth and development while implementing our multi-year strategic plan, which focuses on growth alongside efficiency. The reorganization is intended to sharpen our business focus, simplify our organizational structure and strengthen our control over the value chain.
"At the same time, this is a difficult decision that involves parting ways with talented and valued people. We sincerely thank them for their significant contributions to Tidhar over the years and are confident that they will succeed in their future endeavors."