IDT Corporation (NYSE: IDT) subsidiary IDT Global Services Israel Ltd. has fired dozens of managers out of the company's 1,200 employees. The reasons are financial difficulties at IDT, which has a market cap of $300 million, and a possible change in ownship.
IDT Israel used to operate in two areas. The company's entertainment division briefly operated an animation studio in Beit Shemesh, which had 170 employees. The studio was closed when IDT sold the division. The company's Jerusalem office provides outsourcing services, which compete against Indian outsourcing companies.
IDT's share has dropped 60% within recent months after publishing a higher than expected loss for its second fiscal quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on April 30, 2008
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