The Managing Director of Irish Times, Ms. Maeve Donovan has decided to leave the company, announced the newspaper.

She has stepped down after working for 32 years in the company. She was appointed as the Managing Director about eight years ago. She said through a statement that the newspaper industry has undergone an 'transformational change' since she was appointed.

Ms Donovan was behind the "investment and diversification" strategy of the Irish Times which created a lot of controversy. She had also initiated the reorganization of the core newspaper business.

Under the "investment and diversification" strategy the News paper invested €50m on a property website myhome. ie and also bought a stake in 'The Gloss' magazine, Dublin freesheet 'Metro' and multi-city radio station 4fm.

These investments made the company suffered losses of €26m in 2008. Even some company insiders began to question the strategy. When Ms Donovan was asked if she regrets the decision she said no and explained that the company needed to expand and it takes times to build up profits.

The Chairman backed her strategy and also commended her for broadening the company's portfolio as well as restructuring it.

Some also allege that there were issues between the managing director and her editor, Geraldine Kennedy. Ms Donovan said that there was only "a natural and healthy tension" in the organization.

The board members indicated that the retirement the 55-year-old Ms Donovan was planned and a personal choice. She also said that she had indented to step down around this time.

The Chairman of the company David Went conveyed his gratitude to Ms. Donovan for her services said that she is leaving the company in a good position in the current scenario.

Ms Donovan said that after her retirement she would devote time to peruse the Institute of Director's Chartered Directors Programme and also spend more time with her Husband who also retired recently.

The company has indicated that the next Managing Director will be chosen from within the organization in the time frame of a month to six weeks. Liam Kavanagh who is the Deputy managing director is believed to be the front runner for the job. If he is appointed he will head the company in its most difficult period in its 125-year history.

The newspaper has suffered a loss of €95m in 2008 with a €65m pension fund. Its advertising revenue has collapsed while it incurred huge costs for restructuring and also had €26m of investment write-downs. Ms Donovan expects the cash loss of between €10m and €11m in 2009 due to more restructuring costs and falling revenues from advertising.