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Report: 6,000 state employees could lose their jobs

The Hungarian government’s planned reorganization or phasing out of more than seventy state supported institutions and centrally financed agencies in “the spirit of reducing bureaucracy” could lead to 20% layoffs this year and another 10% next year, affecting approximately 6,000 individuals employed by the state, according to a draft proposal index.hu acquired from unnamed sources.

Cabinet Chief János Lázár on Thursday at his regular weekly press conference, when he first mentioned that 72-73 institutions would be reorganized. (Photo: Károly Árvai/kormany.hu)

Cabinet Chief János Lázár announced on Thursday that the government is considering terminating some 72-73 institutions and not providing a legal successor.

According to index.hu, although the final decision was to be made by Hungary’s Prime Minister Viktor Orbán, Lázár has already come up with a strict proposal that would give him more leverage during negotiations.

The first governmental meeting on the topic is scheduled for February 10, index.hu reported. According to the daily, by the end of February at the latest, the decision regarding all institutions will be reached.

Although ministers involved in the fate of the 73 institutions were surprised when Lázár mentioned the planned move last week, top officials were convinced not all institutions mentioned by Lázár would be closed, index.hu reported, citing unnamed sources. The daily added that many of these institutions are expected to be reorganized and will see layoffs.