CFR Marfa will lay off 2,500 employees this year

CFR Marfa’s board initiated layoff procedures for 2,500 employees at the end of March, according to a press release from the Ministry of Transport.

Minister Dan Sova met on Thursday with representatives from IMF and the World Bank to supplu updated information on the privatization process for CFR Marfa.

“Dan Sova informed the officials that on March 28, as per IMF arrangements, CFR Marfa’s Administration board has initiated procedures for laying off a number of 2,500 employees. Also, in terms of measures for cutting back arrears, at the end of March the railroad company compensated CET-units with RON 87,4 million (…) and services for clients with debts have been halted. Minister Dan Sova pointed out to the officials that for the time being CFR Marfa isn’t on the record with any arrears for the general consolidated budget or for energy suppliers”, according to the Ministry of Transport.

The Romanian Governments made a deal with IMF to aggressively restructure CFR Marfa, the biggest commercial railroad transporter in Romania and to continue the privatization process with a strategic investor. The railroad company’s planned budget for 2014 includes laying off 2,500 employees in order to reach 6,376 employees by the end of the year.

Severance packages for the laid off amount to RON 16.8 million.

Read more about

Working Romania, 11th edition: Changes in HR are engulfing employers and employees altogether

read more