Hungarian telecommunications service provider Magyar Telekom on Monday said it reached an agreement with trade unions to cut up to 300 staff at the parent company in 2009, saving an annual Ft 1.8 billion ($9.7 million) in payroll costs.
Most of the cuts will take place in Q1 2009. Costs related to the headcount reduction, including severance pay, will come to Ft 5 billion, to be accounted in Q4 2008. Magyar Telekom’s management also agreed to raise wages of staff at the parent company by 5.6% from April 2009.
Magyar Telekom said it would introduce a Total Workforce Management system that increases the flexibility and efficiency with which all human resource-related expenses are managed from the beginning of 2009. The company aims to maintain or slightly decrease total labor costs in nominal terms over the next several years.
Magyar Telekom had a group level headcount of 10,559 at the end of June, down from 12,262 twelve months earlier, the company said in its H1 report published in August. (MTI-Econews)