Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Budapest Airport Zrt., the company that is managing the Budapest Liszt Ferenc International Airport, has announced that it will lay off 236 employees due to the lasting detrimental effect of the COVID-19 pandemic on passenger turnover.
In 2019, the number of passengers surpassed 16 million. After the initial shock of the spring lockdown in the wake of the outbreak of the epidemic, the expectation of a yearly turnover of 10 million passengers still seemed realistic, hence the company limited the size of the first layoff in the spring to 190. However, passengers remained reluctant to return, and the introduction of new travel restrictions in September dashed the management’s hope for a moderate rebound of turnover. Currently the firm expects up-to 5.5 million passengers this year.
The firm sought to defer the need for further layoffs by using the subsidy scheme for short-time work. However, the management deems inevitable this second round of layoffs.
In addition to downsizing the workforce, the company will drastically cut planned investments and will focus on the safe operation of the airport.
Eurofound (2020), Budapest Airport Zrt., Internal restructuring in Hungary, factsheet number 101913, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/101913.