Rail Cargo Hungaria will make 500 layoffs by the middle of the year, Christian Kern, CEO of owner OBB, said in an interview published in Austrian daily Wirtshaftsblatt on Monday.
“Much depends on talks with the government,” Kern told the paper.
In November, Rail Cargo Hungaria agreed to scale down planned layoffs after unions threatened to strike. In an earlier interview, Kern said the plan to lay off 460 of the company’s more than 3,000 employees was just “a first step” if the Hungarian government stands by its plan to raise track usage fees.
Fees paid to use tracks in Hungary as well as state-owned railway company MÁV’s engines make up about 60% of Rail Cargo Hungaria’s costs.
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