EMCC European Monitoring Centre on Change

Magyar Telekom

Company/Organisation:
Magyar Telekom

Geographic Location

Country: Hungary

Company

Sector: Information / communication
Telecommunications
61 - Telecommunications
Number Employed: 9226
Group: Deutsche Telekom

Employment Effects

Announcement Date: 04-10-2017
Planned Job Reductions min: 350
Planned Job Reductions max: 510
Type of Restructuring: Internal restructuring
Employment Effect Start: 31-12-2017
Direct Dismissals: 350
Other Job Reduction Measures: 160

Additional Information

Magyar Telekom, the Hungarian subsidiary of Deutsche Telekom, announced a 350 persons dismissal by the end of 2017, after coming to an agreement with the trade unions. A further 160 employees are planned to be made redundant in the near future due to decreasing human resource requirements in some projects.

At the same time Magyar Telekom promised an average 5 % increase in wages for the remaining employees across the board and training and consultancy support to those being made redundant. Severance payments are estimated to amount to a total of HUF 2.8 billion (EUR 9.1 million).

Magyar Telekom has been steadily decreasing its workforce in recent years, the planned 510 person layoff means a 5.5 % drop from the 9,226 workforce of June 2017.