Type
Internal restructuring
Country
Hungary
Region
Kozep-Magyarorszag; Kozep-Magyarorszag; Budapest
Location of affected unit(s)
Budapest
Sector
Public Administration And Defence
Public Administration And Defence; Compulsory Social Security
Public Administration And Defence; Compulsory Social Security
84 - Public administration and defence; compulsory social security

400 jobs
Number of planned job losses
Job loss
Announcement Date
21 June 2006
Employment effect (start)
Foreseen end date
31 December 2007

Description

Half of the employees are planned to be laid off from the Hungarian Ministry of Economy and Transport (Gazdasági és Közlekedési Minisztérium, GKM), the Minister announced. The dismissals will take place in the context of a project of streamlining the Ministry, as well as the entire public administration system, being a part of the efforts of the recently re-elected MSZP-SZDSZ coalition Government to reduce state expenditures and to restore the budgetary balance (‘austerity package’). GKM has taken over most of the responsibilities from the Ministry of Informatics and Communication, which was closed down as part of the restructuring. GKM currently employs 800 people, 25% of whom are planned to be laid off until January 2007, and another 25% is expected to be dismissed in the course of next year. The number of departments within the Ministry will be reduced from 70 to 25.

A press release of the Ministry in December 2006 stated that the number of state secretaries has been reduced to four from the previous eight in the course of 2006, while currently less than 600 employees are employed from the previous 800. The Ministry is saving as much as HUF 15 billion as a result of the downsizing, János Kóka, Minister of Economy and Transport explained. The number of GKM's support institutions, supervised by the Ministry, is expected to drop from 47 to 17, resulting in the dismissal of 1,100 employees.


Sources

  • 11 December 2006: Magyar Nemzet
  • 6 June 2006: Napi Gazdaság

Citation

Eurofound (2006), Gazdasági és Közlekedési Minisztérium, Internal restructuring in Hungary, factsheet number 63854, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63854.