Sodastream continues to lay off the giant (Shutterstock photo)
In 2019, Sodastream received a grant from the State of Israel in the amount of NIS 12.5 million. Following the receipt of the grant, the company pledged to increase their workforce by 516 employees by 2024 in addition to the 1,600 employees who were working at Sodastream at that time.
In recent weeks, Sodastream decided to lay off about 120 of the company’s employees working in the Adin Negev industrial area, near Rahat, and now the Investments Authority of the Ministry of Economy and Industry is demanding clarification from the company. This is a second wave of layoffs after in October 2021 it fired about 300 employees.
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The Investments Authority of the Ministry of Economy and Industry stated that “the company has an active program and as part of it a commitment to hire 516 new employees. Every year a check is made on the increase in employees according to the provisions of the program, since the payment of the grants is subject to meeting the goals of the investment plan. With the company’s announcement, a discussion was held between the Authority’s director and the company’s representatives and in which they were asked to provide clarifications on the matter”, as published in Calcalist.
Sodastream said in response that “Sodastream employs over 2,000 workers in Israel and is proud – especially these days – to implement values related to providing employment opportunities and equal opportunities in the periphery. Since its purchase by PepsiCo, the state’s revenues from direct taxes paid by Sodastream and its employees are estimated at more than one billion shekels. In this period of time Sodastream received, in light of its compliance with the conditions of the incentive programs, grants in an amount that is less than 5% of the state’s revenues from Sodastream. In any case, Sodastream will operate transparently and in coordination with the Investment Authority as required.”
The company went on to explain that “in recent years, the company has increased the scope of its workforce to meet the growth that has accompanied it for a long period. The current demand forecasts reflect a return to the levels that were known in the past, before the outbreak of the corona virus. At the same time, the company is exposed to the fluctuating global market conditions, which affect its activities. These require us to take efficiency measures.”
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