Tarom will lay off 700 employees by the summer and will be removed from management positions. One in 11 employees works in the airline

Tarom is preparing to lay off 700 employees by the summer of this year and thus reduce its management positions. Currently, the company employs a boss with 11 employees, almost double that of competing operators.

Tarom now has almost 1,500 employees. Since June last year, 250 employees have left. In total, by the end of the summer, 700 people must disappear from the scheme, according to him PRO TV news.

There are currently 130 management positions, and the ratio is 1 boss to 11 employees, while in competing companies on the market, the ratio is 1 boss to 20 employees.

Reduced work week

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Of the remaining employees, 1,000 are now technically unemployed. The working week at Tarom was reduced from 5 to 4 days.

In addition, in order to reduce costs, Tarom wants to disband non-performing ticketing agencies in several countries by May and offer online services, according to an analysis by the company.

Due to the pandemic, it came to operate only 20 percent of the races it had before the pandemic.

Big losses at Tarom

This year, TAROM forecasts a loss of 315 million lei, at revenues of 1 billion lei and expenses of over 1.3 billion lei. This would be the 13th consecutive year of loss for the state airline.

In 2020, staff costs will approach 200 million lei, and those with salaries will exceed 140 million lei. TAROM has about 1,607 employees, down from the previous year, when it had 1,811 employees.

At the beginning of November, the Minister of Transport, Lucian Bode, announced that over 100 employees have already accessed the option of voluntary departure, receiving between six and eight average salaries in compensation, ie about 44,000 – 60,000 lei, given that the average salary is of 7,300 lei.

Another 500 employees are to leave, according to the restructuring project approved by the board of directors. Thus, the company would have almost 1,000 employees and reduce the number of bosses, which is currently one to nine employees, ie 192 directors, according to the Minister of Transport.

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Source: Breaking News – Cele mai importante stiri – Ziare.com by ziare.com.

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