Press Releases

Budapest, October 18, 2013 16:00

Magyar Telekom announces that it has reached an agreement with the trade unions on its headcount reduction and other cost efficiency measures for 2014 at its Hungarian operations.

According to the terms of the agreement, the Company plans to make around 250 employees redundant. The majority are expected to leave the Company by the end of 2013. Total severance expenses related to the headcount reduction will be approximately HUF 2.3 billion and the majority of these will be accounted for in the fourth quarter of 2013.

Meanwhile, in order to stay competitive, the Company needs to invest in new competencies that are integral to the expansion of its service portfolio along with the technological developments. After careful evaluation as to whether expansion or a restructuring of the existing resources is the more efficient, the Company has decided to recruit 270 new employees into these new areas by the end of 2014, compared to the level at the end of 2012.

The agreement with the trade unions also states that as part of the cost efficiency measures, there will not be any general increase in the base salaries for parent company employees during 2014.

Based on these measures, our goal is to keep Total Workforce Management related costs (excluding severance and capitalized employee expenses) flat in 2014 compared to 2012.