Hot Mobile fires 40
Feb 26, 2013 (Globes - McClatchy-Tribune Information Services via COMTEX) --
There is another wave of layoffs at Hot Mobile Ltd., three weeks before Passover. Sources inform "Globes" that 40 headquarters and sales employees will be fired within the coming days. The company has 700 employees.
The latest layoffs are reportedly related to the slowing in the customer recruitment rate in recent months. In contrast to the past, this time, Hot Mobile clearly confirms the layoffs and is not trying to claim that they are part of regular streamlining measures.
Hot Mobile has been going through severe shocks in recent months, the worst of which was the resignations of chairwoman Stella Handler, CEO Yaakov Nadvorani, and several VPs and department heads. The company is slashing costs because of the intense competition in the mobile market and because an increasing part of its business is being handled by its parent company, Hot Telecommunication Systems Ltd. (TASE: HOT.B1), rendering many jobs at Hot Mobile redundant.
The measures are part of a planned merger of Hot Mobile with Hot, although Hot is not explicitly saying this because of the structural separation requirement between the companies.
Hot Mobile said in response, "We are forced to adjust our manpower in accordance with our needs and the changing conditions in the communications market."
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