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January 17, 2022

CFR Marfa to lay off 30 pc of personnel next year

Nevertheless, the public railway company estimates an 8 pc increase in revenues and 63 pc decrease in losses, according to the adjusted budget draft.
According to the income and expense budget draft for 2014, which also includes compensatory layoff payment expenses of RON 16.8 million and was published recently by the Ministry of Transportation, owner of CFR Marfa, the railway state company will lay off 2,500 of its employees in the coming year, leaving a number of 6,376 employees, Mediafax informs. CFR Marfa estimates a number of 8,876 employees by the end of this year. This year’s adjusted budget draft does not include compensatory layoff payment expenses.
The deadline for proposals and observations is December 1.
The government and IMF have decided CFR Marfa should be “aggressively” restructured by cutting personnel expenses, selling outdated wagons to junkyards, and stopping deliveries to clients who are in debt to the company.
According to the cited document, CFR Marfa estimates revenues of RON 1.11 billion for next year, 8.6 percent higher than the RON 1.02 billion level foreseen in this year’s budget draft, as well as losses of RON 82 million, 63 percent lower than the negative result of RON 220 million foreseen for 2013. The ‘bonuses’ column in the 2014 income and expense budget mentions an amount similar to this year’s value of RON 1.12 million and mandate contract expenses on the rise from RON 1.48 million to RON 2.25 million. In addition, the company expects to allocate RON 626.8 million for goods and services expenses, and RON 76.6 million for investments. In 2013, goods and services expenses were estimated at RON 598.9 million, while investment expenses were estimated at RON 75 million. CFR Marfa’s revenues have dropped by 5 percent in the first nine months to RON 714.3 million. The target level was not reached due to cutbacks in transported volumes and blocking the cassation process for outdated wagons, leading to a 20.8 percent decrease in losses to RON 135.3 million, according to data recently provided by the company.

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