The online translation company is laying off over 25% of its employees following the cancellation of its agreement with Google.
Following the decision of Google (Nasdaq: GOOG) not to extend its contract with Babylon Ltd. (TASE:BBYL), the on-line translation company is preparing to fire 40-50 employees in Israel, market sources believe. Babylon has 160 employees at its offices in Or Yehuda so that the cutbacks will amount to more than 25% of staff. Babylon has already begun hearings with employees that it plans to fire.
Babylon said, "Following recent events and changes in the business environment, the company has begun summoning employees to hearings ahead of a process of reducing manpower at the company in accordance with the new situation."
Earlier this week, Babylon reported that Yahoo! would not be cancelling its agreement but that the planned merger with ironSource had been cancelled for the time being. The company also reported that CFO Shanit Pe'er-Tsfoni was succeeding Alon Carmeli as CEO.
Published by Globes [online], Israel business news - www.globes-online.com - on November 13, 2013
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