Israeli credit card co Max lays off 50

Ron Fainaro

With credit card transactions down, Max, formerly Leumi Card is also cutting salaries of management and the board of directors by 10% until the end of the year.

Israeli credit card company Max is laying off 50 from its work force of 1,500. Max, owned by US private equity firm Warburg Pincus, and which was formerly Leumi Card owned by Bank Leumi (TASE: LUMI), said , "as part of the streamlining measures required to reduce expenditure at this time," and after, "the company could not reach agreement with the workers committee about postponing pay rises and reducing vacation pay etc."

At the same time, Max is also cutting salaries of management and the board of directors by 10% until the end of the year.

Max, like its rivals, has been directly influenced by the coronavirus and the fall in credit card transactions because major sectors of the economy have come to a halt. In particular, the complete halt in use of credit cards overseas by Israelis has been a major loss for the credit card companies because it represents a significant part of the credit card companies' revenue and profitability.

Max CEO is Ron Fainaro.

Published by Globes, Israel business news - en.globes.co.il - on May 21, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

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