Wolves at the door and they’re hungry: Magyar Telekom to lay off staff to cut costs

Hungarian carrier Magyar Telekom (MTel) is laying off 500 of its workforce before the end of this year at an estimated cost of HUF6 billion (USD27.1 million) in a bid to cut costs, the firm said in a statement. The Deutsche Telekom owned unit is aiming to trim 5.6% off its overall staff costs next year, excluding severance costs, compared to its 2011 spending levels, Reuters reports. It is understood the redundancies do not include those related to worker retirements or employment termination of executives. On the plus side however, those staff whose jobs are safe will receive a 4% salary increase in 2013 ‘to maintain the real value of their income’.