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Foundering company

Noga Electrotechnika (TASE:


) has begun to slash its workforce.

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Thirty-seven of the company's workers received pink slips on Wednesday, TheMarker has learned.

Before the company's collapse, it employed 160 people.

Among the laid-off workers is a woman in her ninth month of pregnancy, who was dismissed without the appropriate permits of the Labor and Welfare Ministry.

The company's collapse began in late August. Noga has warned that it expects to post a loss ranging from NIS 40 million to NIS 60 million for the second quarter. It has yet to file its second-quarter statement, and is fighting liquidation petitions in the courts.

In a request for a stay of proceedings, Noga wrote that its cash flow difficulties have hampered its ability to continue functioning as a viable business entity. Its debts total no less than NIS 823 million. About half of that is owed to the banks.