State railway company MÁV Zrt will cut 30% of its workforce of 8,568 by 2007, deputy chief executive István Heinczinger said on Friday.
Most of the cuts will be among the company's administrative staff, he said. Other measures will include selling off MÁV's freight division as well as spinning off its asset management and maintenance divisions at the start of next year, he said.
An annual Ft 80 billion will be available for railway developments during the 2007-2013 European Union budgetary period, Heinczinger said. MÁV aims to have all modern rolling stock by the time the rail passenger market is deregulated in 2012.
Speaking at a ceremony to mark Railway Workers' Day on Friday, Economy and Transport Minister János Kóka asked MÁV employees to support the government's plan to reform the country's rail system. Kóka addressed the rail workers only days after plans were unveiled to discontinue passenger services on some infrequently traveled routes and carry out massive staff reductions.