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Magyar Telekom to lay off 500

Magyar Telekom on Monday said it plans to make 500 employees redundant in 2013. The company said it reached an agreement with trade unions on the layoffs and other cost efficiency measures at its Hungarian business for 2013.

Most of the layoffs are expected to take place by the end of 2012, it added. The 500 layoffs do not include termination of executives or retiring employees. Severance costs related to the layoffs will come to about HUF 6.0 billion, to be booked in Q4 2012. Under the agreement with unions, Magyar Telekom will raise the base salary of employees at the parent company by 4% from April 2013. Magyar Telekom said it aims to reduce total workforce management related costs, excluding severance and capitalised employee expenses, by HUF 5.8 billion in 2013. In 2008-2013, it sees these costs decreasing by 18.4%.