Ailing Bulgaria Railway Company BDZ to Lay off 13% of Employees
Bulgaria's state-owned railway company is going to lay off about 13% of its employees by the first months of 2010.
This has been announced Tuesday by Pencho Popov, the newly appointed Executive Director of BDZ. Bulgaria’s Transport Minister Alexander Tsvetkov has replaced the previous BDZ head Hristo Monov with Popov.
Starting October 1, the BDZ has initiated a procedure to lay off 1 330 employees, and at least 700 more will be made redundant in January 2010. The layoffs are mostly in the administrative staff of the company.
The new BDZ Director Popov said one of his priorities would be to reduce the inflated administrative staff, and to scrap departments that have the same functions.
Popov announced that the BDZ currently owed BGN 150 M, and that for the first nine months of 2009 it had accrued losses amounting to BGN 20 M. By the end of the year the losses are expected to reach BGN 40 M.
The new Director explained that about 25% of BDZ’s income was allocated for paying off various loans.
Popov said the company was not going to raise the ticket prices, and that he did not intend to go ahead with the idea that BDZ should acquire shares from the bankrupt Kremikovtzi steel plant as a compensation for the money that the steelmaker owes BDZ.
- » KTB Directors: BNB Report Is 'A Lampoon'
- » Deposits In Bulgaria's Banks Up BGN 531 M In September
- » Bulgaria Is Second Favorite Destination Among Russians
- » Bulgaria Threatens to Terminate Contract for Struma Motorway Lot 4
- » 20 Bulgarian Companies to Build Infrastructure for Qatar's 2022 FIFA World Cup
- » Audit Finds BGN 4.2 B Impairment Costs on KTB Balance Sheet, Bulgaria C. Bank Says