The Israel Manufacturers Association reported Monday that 58 percent of factories in the Negev plan on laying off workers in the first quarter of 2009. Around 1,700 factories with 39,500 workers plan on laying off approximately 6.3 percent of their workforce, or 2,500 workers.

In addition, 60 percent of the factories reported that they would reduce production hours. 80 percent reported a decline in sales, while 70 percent reported that they would lower managers' salaries.

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