Budapest, June 24 (MTI) – Magyar Telekom on Thursday said it planned to cut up to 1,700 jobs over the next year and a half, under an agreement reached with trade unions.
About 40 percent of the redundancies are expected between October 1, 2014 and March 1, 2015, MTel said. The rest are expected by January 1, 2016.
Severance pay for staff who are let go is expected to come to 12 billion forints (EUR 38.6m), with 4 billion forints of the amount accounted in September 2014.
MTel also agreed to raise wages 4 percent for low-earning staff employed from January 1, 2016 with retroactive effect from July 1, 2015.
The measures are expected to result in 15 billion forints of cost savings in two years, MTel said.