Employees of MSN Israel are having a rough time, but the saddest story of all may be how the company's owners are treating them. Sources inform ''Globes'' that MSN Israel junior employees learned about the pending layoffs in the media, and were handed their letters of dismissal upon arrival at work this morning. MSN Israel fired 16 employees, a third of its 50-person staff.
More senior MSN Israel employees were humiliated, as the name of employees who will be kept were read out from a list and directed to a conference room, where they were updated on developments. The other employees were dismissed.
A source close to MSN Israel confirmed the report. "The employees were summoned to a conference room where they were updated on developments. The employees who were kept outside realized that they were being fired. The meeting was very long. [Internet Gold CEO and MSN Israel chairman] Eli Holzman was present and told the employees what was going to happen. [MSN Israel general manager Shraga] Mor knew nothing of this action in advance and decided to quit," he said.
Microsoft was exercising an original clause that it could buy out its partner in the venture at any time, even though it held the minority stake.
Microsoft said in reponse, "According to the agreement between Microsoft and Internet Gold, for the 3 month interim period (until October 5), Internet Gold continues to manage MSN Israel - including all employment issues."
Internet Gold had invested $7 million in MSN Israel and will reportedly break even, but make no profit.
Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008