EMCC European Monitoring Centre on Change

Magyar Telekom

Company/Organisation:
Magyar Telekom

Geographic Location

Country: Hungary
Region: Budapest; Kozep-Magyarorszag; Kozep-Magyarorszag
Location of affected unit(s): Budapest

Company

Sector: Information / communication
Telecommunications
61 - Telecommunications

Employment Effects

Announcement Date: 18-10-2011
Planned Job Reductions min: 250
Type of Restructuring: Internal restructuring
Employment Effect Start: 25-10-2011
Direct Dismissals: 250

Additional Information

On 18 October 2011, Hungarian telecommunications company Magyar Telecom agreed with the trade unions a social plans envisaging the layoff of 250 employees until 2012. This count does not include additional redundancies implemented through retirement and job cuts affecting 24% of executive positions.

Management and unions also agreed that there would be no general increase in base salary for employees in 2012. However, benefits in kind will be increased for low-earning employees due to personal income tax changes.