The management of Israeli media group Yedioth Ahronoth has decided to close down its chain of 17 local newspapers, which employ 100 people, sources inform "Globes." This dramatic step comes as part of the media group's strategy to buy the group's shares held by Bank Hapoalim (TASE: POLI) before the end of the year.
The decision comes amid tough talks with the workers committee after a work dispute was declared over management's decision to lay off 130 people in the entire group including 30 people at Yedioth Media, which owns the local newspaper chain.
Readership in the print sector has been declining for some years and the shift to digital consumption of news has been hastened by the Covid-19 pandemic. The Y-Net website is the most profitable arm of the media group and for the time being no layoffs are planned.
Journalists at Yedioth Ahronoth and financial newspaper Calcalist have a collective agreement, which expires in February 2021. Yedioth plans firing 100 journalists and it is not clear whether the latest decision to close the local newspapers will reduce this number.
Published by Globes, Israel business news - en.globes.co.il - on November 10, 2020
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