Romania To Cut Over 7,000 Jobs In State-Owned Companies

05.15.2011 By Bostan Radu

Romania's government has pledged to cut more than 7000 jobs in state railway companies, energy suppliers and the national postal company, while lowering their running costs through renegotiated contracts, says the letter of intent to a EUR3.6 billion loan agreement with the IMF.

The jobs will be cut this summer through layoffs and voluntary redundancy, according to the letter.

The list of companies that will have to reduce their staff and the deadline for this operation has been included in the letter's technical memorandum. The list includes:
- public road authority CNADNR: at least 600 jobs cut by mid-July;
- CFR Marfa: 3000 jobs cut by end-June, number of regional branches reduced from eight to four;
- CFR Calatori: at least 1000 jobs cut by end-June;
- CFR: at least 1500 jobs cut by end-June;
- Electrificare CFR: at least 250 jobs cut by end-August;
- Telecomunicatii CFR: at least 100 by end-August;
- Posta Romana: at least 70 administrative positions cut and 900 fewer branches by end-July;
- Termoelectrica: at least 300 by end-June;
- the Turceni energy complex: 200 jobs cut by end-September.

These companies' running costs will also be lowered by renegotiating or terminating "underperforming" contracts (signed by CNADNR or airline Tarom) and through voluntary redundancy (Tarom).