Former Labor Party leader Avi Gabbay has been appointed as the new chief executive of telecommunications company Cellcom.
Gabbay, who served as CEO of Bezeq from 2007 to 2013 prior to entering politics, will succeed outgoing Cellcom CEO Nir Sztern on January 19. The Labor ex-leader quit politics ahead of the September 2019 elections.
The appointment was approved on Saturday evening by Cellcom’s board of directors. The move comes after Gabbay traveled to Argentina last week to meet with Eduardo Elsztain, the controlling shareholder of IDB Development, the holding group that controls Cellcom.
"I am confident that Mr. Gabbay, with his excellent understanding of the communications market and his leadership, is the right person at the right time to lead Cellcom to carry out its recovery plan and return to profitability," said Cellcom chairman Ami Erel. "I would like to thank Nir Sztern for his years of service to the company."
Sztern, who has headed Cellcom since 2012, announced his intention to resign from the Netanya-headquartered company on December 19, 2019.
Facing intense competition, Cellcom announced in September 2019 it would be carrying out a “comprehensive restructuring plan” of the company. Measures include a “substantial reduction” in manpower and broad cost-cutting measures.