Magyar Telekom

Type
Internal restructuring
Country
Hungary
Region
Kozep-Magyarorszag; Kozep-Magyarorszag; Budapest
Location of affected unit(s)
Budapest
Sector
Information / Communication
Information Communication Services
Telecommunications
61 - Telecommunications
300 jobs
Number of planned job losses
Job loss
Announcement Date
8 October 2010
Employment effect (start)
1 January 2011
Foreseen end date
31 December 2011

Description

Following discussions with their trade unions, Magyar Telekom has announced that they will lay off 300 employees from their Budapest location in 2011.  The company's restructuring efforts will reduce labor costs by more than 8% in 2011 compared to two years earlier. Severance pay related to the layoffs will come to about HUF 3.5 billion. Unions agreed to a 4% pay rise for 2011, to come into effect from July. More specifically, about 520 of the company's higher paid staff will be entitled to an average wage increase of 2%.

Sources

  • 8 October 2010: IT Cafe
  • 8 October 2010: Heti Világ Gazdaság

Citation

Eurofound (2010), Magyar Telekom, Internal restructuring in Hungary, factsheet number 71031, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/71031.