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MTel to cut staff, raise wages

Magyar Telekom (MTel) on Wednesday said it would lay off 350 staff under an agreement reached with trade unions on a headcount reduction and wage rises for 2018, state news wire MTI reported. Most of the layoffs are expected to take place by the end of 2017, it added.

A further 160 employees are expected to leave the company as a result of a number of discontinued corporate projects, MTel said.

MTel estimated severance pay for staff made redundant would reach HUF 2.8 billion, most of which will be accounted in Q4 2017.

Salaries will rise by an average 5% from the start of next year under the agreement, MTel said.

The net effect of the measures is expected to keep payroll costs flat in 2018, the telco added.