Press Releases

Budapest, July 24, 2014 09:45

Magyar Telekom has reached an agreement with the employee representative bodies in place at the company regarding the salary, headcount and fringe benefit issues of the next two years.

Magyar Telekom’s management has made numerous steps to lay the foundation for a future-proof company by ensuring efficient, modern and permanently sustainable operations, as well as by safeguarding its existing market positions, in line with the strategic program earlier announced by the company under the title of Telekom 2017.

At the same time, in light of the external environment and the highly competitive nature of both the global and the Hungarian telecommunication market, Magyar Telekom is forced to adopt further radical cost reduction measures for the continued improvement of its competitiveness, in the framework of which the company will need to lay off approximately 1,700 employees in course of the following two years.

The headcount reduction shall take place in multiple phases. Some of the employees will leave the company this year, while the rest will do so in the next one.

The company shall provide active job search, labor market training and one-on-one counselling to the colleagues laid off, in the framework of Program Chance, which has proven its success in the past years, and trusts that the above support these highly trained employees of up-to-date professional expertise in finding employment elsewhere as soon as possible. The company also launches a voluntary layoff program, in the framework of which those who apply to be laid off receive extra benefits.

Magyar Telekom wishes to continue to provide competitive remuneration to its employees remaining on board, and shall maintain its relations with vendors.

Along with the achievement of the cost reduction targets, the leaner organization thus established at the market leader telecommunication company, will, according to the management, be able to more flexibly adapt to market challenges and perform as a real online company when fulfilling its customers’ demand.