Major Layoffs and Upsizing in Israeli Media: Group in Crisis

Summary of Recent Developments

The management of the Yedioth Ahronoth Group, owned by Noni Mozes, has initiated a new round of layoffs, which will see 18 employees, including some long-term staff, lose their jobs. This comes as part of a broader cost-cutting strategy as the company confronts the waning influence of its flagship newspaper.

In a parallel move, i24 NEWS, owned by Patrick Drahi, has proposed a voluntary retirement plan resulting in 46 employees expressing their wish to leave among a total workforce of 380 across its four channels broadcasting in Hebrew, Arabic, English, and French.

Contextual Background

Drahi announced the efficiency plan following significant financial setbacks faced by his parent company, Altstart, which has paused investments in the news channels and shifted control to the Drahi family. The voluntary retirement package offers varying severance bonuses based on tenure, with amounts reaching up to 20,000 shekels for those who have been with the company for more than two years.

Negotiations between management and employee representatives are expected to commence shortly, addressing these layoffs and improving employment conditions.

The broader media landscape in Israel is also feeling the strain, as many traditional outlets, including Yedioth Ahronoth, are grappling with diminished readership and revenue streams. Recently, the company announced a plan to reduce over 100 positions and consolidate its digital and print operations. This plan follows a protracted negotiation process that resulted in a labor agreement with the employees, which had previously been stalled with the appointment of a new editor-in-chief.

Amidst these changes, tension has risen between employees and management, particularly after a strike was announced by the employee representatives, leading management to communicate that participation in work stoppages would result in wage penalties.

Additional Repercussions in Media Operations

The company has also made significant operational changes, including the closure of the “Menta” magazine and start radio, along with the shuttering of the local news network “Yedioth Communications,” after efforts to maintain its viability were unsuccessful.

Despite this, start continues to innovate, recently launching a new podcasting hub featuring notable contributors from various sectors.

As the communication industry faces unprecedented financial challenges, stakeholders, including Communications Minister Shlomo Karhi, are pushing for changes to cross-ownership regulations that currently inhibit i24 from broadcasting over cable and satellite platforms.

The impacts of these layoffs and restructuring efforts within the media groups are expected to resonate throughout the industry, as further consolidations and adjustments are likely in response to evolving economic conditions.

Conclusion

The Yedioth Ahronoth and i24 NEWS groups are currently navigating a challenging financial environment, marked by layoffs and cost-cutting measures. As these changes unfold, the future of media operations in Israel remains uncertain, prompting questions about the sustainability of traditional news outlets in the contemporary digital age.