Magyar Telekom to lay off 1,700 workers
Magyar Telekom, the subsidiary of Deutsche Telekom, declared 1,700 workers redundant following negotiations with worker-advocacy groups, the Hungarian service provider announced today.
Approximately 40% percent of the layoffs would take place during October 1, 2014–March 1, 2015, while the remaining 60% of the layoffs would occur by January 1, 2016, according to the announcement. The company is expected to pay up to HUF 12 bln in severance pay for laid-off employees.
Under the agreement with the workers' advocates, employees in the lower-paying categories will be kept on staff until January 1, 2016, which would cost the company HUF 15 bln.
Magyar Telekom currently employs 11,141, so the layoffs will reduce about 15% of staff.
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