Layoffs at Ma'ariv to begin this month

Ma'ariv Holdings' board has given chairman Zaki Rakib full support to make the cuts.

Sources inform ''Globes'' that the massive cuts at Hebrew daily "Ma'ariv", including the axing of scores of employees, will begin this month. It is not yet clear which sections of the paper will see the cutbacks and job losses; they will reportedly include some journalists, but mainly administrators.

The upcoming layoffs are part of the sharp cuts in paper over the coming months that Ma'ariv Holdings Ltd. (TASE: MARV) chairman Zaki Rakib will announce in April.

The sources said that Ma'ariv Holdings' board of directors has given Rakib full support to make the cuts, which include the axing of scores of employees, pay cuts, and lower printing costs, probably by reducing the size of the paper. The sources believe that "Ma'ariv" will reduce both its weekday and weekend editions, including its "Rating" TV guide and its woman's magazine "At".

Ma'ariv declined to comment on the report.

Ma'ariv in talks to sell printer to "Israel Today"

Ma'ariv has begun talks to sell its printing house to Sheldon Adelson's freesheet "Israel Today". Haaretz Group's printing house currently prints "Israel Today", and the loss of the printing contract and distribution of the freesheet to rival "Ma'ariv" would be a serious financial blow, costing "Haaretz" and its owner, the Schocken Group, tens of millions of shekels a year.

Proceeds from the sale of the printing house could ease Ma'ariv Holdings' dire financial condition. Bank Hapoalim (TASE: POLI) has called in the company's NIS 106 million debt within a week

Ma'ariv confirmed the negotiations, but "Israel Today" declined to comment.

Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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