Bulgaria's Socialist-led government is getting ready to lay off 40 000 State servants, according to a letter of Finance Minister, Petar Chobanov.

The letter has been sent to other ministers from the Cabinet and to a number of institutions' heads, asking them to coordinate efforts in preparing State budget 2014, keeping in mind that their estimates must include 10% staff reduction.

Prime Minister, Plamen Oresharski, and the Finance Ministry have confirmed the information that about 40 000 administration employees (10%) will be dismissed.

According to unconfirmed information, several large administration structures will be exempt.

The layoffs will be effective January 1, 2014. They will, most likely, begin on December 1, as the Labor Code mandates a month-long warning.

The deadline for ministers to present to Chobanov proposals for staff reduction is October 16.

Meanwhile, the trade unions report tensions, anxiety and rumors among State servants as the news of layoffs spread. The unions warn of strikes and rallies over the decision. Union leaders inform that employees of the National Health Insurance Fund, NZOK, are already planning a strike.

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