Sources inform ''Globes'' that Ness Technologies Ltd. (Nasdaq: NSTC) subsidiary Ness Israel Ltd. has taken more cost-cutting measures. The company today notified employees that it was making a 5% across-the-board pay cut, the second cut in recent months.
Ness Israel, one of Israel's largest IT integration services companies, has 2,500 employees. Ness Technologies is due to publish its financial report for the fourth quarter of 2008 and the year as a whole next week. The share closed at $4.24 yesterday, giving a market cap of $168 million.
Ness Israel said in response, "Ness Israel is preparing to deal with the economic reality in line with forecasts for 2009, which predict that the global economic crisis will continue, and will affect the Israeli market."
Ness Israel is not the only company to announce cutbacks in the past 24 hours. Competitor Matrix IT Ltd. (TASE:MTRX) notified the TASE yesterday that it was cutting managers' pay by 7.5% "because of the economic crisis and its possible repercussions." The pay cut affects 100 employees, including top management, the president, and the CEO.
Published by Globes [online], Israel business news - www.globes-online.com - on January 29, 2009
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