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.
Hungarian telecomunications company Pannon anncounced plans to cut 200 jobs in 2010 as part of a cost-reduction programme. Hungary's second-largest moblie phone operator, part of the Norwegian group Telenor, is looking to make €7.1 million in payroll savings and reduce overall costs by €11.2 million. 50 contractors are also to lose their jobs.
An austerity drive by Telenor, poor performance from Pannon in 2009 (a 9.6% drop in annual revenue) and the weakness of the Hungarian Florint have all been cited as reasons for the cuts. Panon's CEO Anders Jensen said:
"The decision to reduce costs, maximise productivity and refocus investment on Mobile Broadband services will increase our ability to satisfy customers and achieve high, sustainable growth".
"We recognise that this is a tough decision and we will take careful steps to ensure a direct, inclusive and open consultation process with all our employees. Those impacted will receive severance packages that recognise their contribution to Pannon. We will also provide adequate support for individuals seeking alternative employment through the provision of out-placement services."
Eurofound (2010), Pannon, Internal restructuring in Hungary, factsheet number 70325, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/70325.