The layoffs are part of moves to increase productivity.
Sources inform ''Globes'' that Shlomo Ben-Tzvi will lay off 12% of the 400 employees at "Makor Rishon", as part of the newspaper's streamlining measures. The move came after the employees petitioned the court for the appointment of a temporary liquidator for the company.
"Makor Rishon" said in response, "In view of the economic crisis and expected recession, and similar to measures at other Israeli media companies, the newspaper will undertake streamlining measures and cut its workforce by 12%. The newspaper is financially sound and stable, and also intends to solve the financial dispute that has developed with a small number of the newspaper's employees."
After a meeting yesterday between Ben-Tzvi and the newspaper employees, he sent a letter to employees, which stated, "The condition of the company requires an immediate recovery plan in order to deal with the global credit crisis and the expected recession that will likely deliver a severe blow to the advertising market in general, and print news advertising market in particular. The company therefore obtained financing from its parties at interest as a vote of confidence in the company and especially in you - the company's employees."
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2008
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