The merger of Malam and Team to create Malam Team Ltd. (TASE: MLTM), which created Israel's largest information technology (IT) services company by sales, is not going smoothly. Sources inform ''Globes'' that that the company is cutting staff as part of streamlining measures. The layoffs include several VPs and other executives. The salary terms of other employees are also affected.
The sources added that employees were notified last week about the cuts in the company's policy on accumulated vacation days.
Controlling shareholder Shlomo Eisenberg reportedly explained to the employees being cut that he was forced to reduce staff as he was "fighting for the house".
Malam-Team said in reference to the report, "As a result of the merger between Malam and Team, we have undertaken a number of organizational changes necessitated by this measure, which include the elimination of a number of positions at headquarters. At the same time, the company is seeking to hire more "constructive" staff, which will continue throughout 2008."
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2008
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