Clal Finance Ltd. (TASE:CLFN) will lay off up to 40 - nearly one out of six - of its 240 employees, as the new CEO, Tal Raz, shakes up the investment house and refocuses on its core business. Salaries of the remaining employees will be cut by up to 20%. The company will apparently announce the layoffs and pay cuts next week.
Clal Finance has fired 60 employees over the past year, as the economic crisis hit. Last week, the company sold half its stake in AVA Financial Ltd..
Raz took over as CEO of Clal Finance from Shuki Avramovich last month, and is replacing top managers at the company. Clal Finance Mutual Funds CEO Guy Chachami is leaving, and more changes are apparently one the way.
Clal Finance is a unit of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), held through Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS). Clal Finance's share was unchanged at the opening today at NIS 3.15, giving a market cap of NIS 348 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2009
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