Malév to lay off 10% of staff
Friday, October 28, 2005, 08:03
Malév Hungarian Airlines Rt is cutting off 10% of its workforce. In 2005 the company is lying off 350 employees, some of which has already quit the company voluntarily, Népszabadság reported. The reduction of staff will mainly affect flight attendants, the number of which has been pumped up unreasonably in the past couple of years, János Gönczi CEO said. The CEO first mentioned the need for the drastic changes in early September. Back then Gönczi talked about lying of 600 employees. The dismissal was due to severe financial difficulties the company has been facing in the past years; Malév had losses of Ft 13.5 billion in 2003 and Ft 5 billion last year. In 2005 the company is expecting minor profits with total sales revenue of Ft 120 billion. This year Malév managed to stop making losses by selling its kerosene business unit. Budapest Airport maintenance company is also considering cutting off its aircraft cleaning staff and planning to outsource the activity to B+N Kft offering half of the wages.