The Romanian Government approved mass layoff procedures for 500 employees of state-owned thermal power company Termoelectrica. The first 200 will be axed in June, and the rest will work until November. The company will spend some EUR 4 million on severance payments until 2014.

Termoelectrica, with 12,000 employees, is on the list of companies monitored by the International Monetary Fund (IMF), and is due to restructure. A report by the World Bank showed that Termoelectrica's loss stood at so 46,000 per employees, which sent it to the list of almost bankrupt companies.

The Govermment started to separate Termoelectrica's valuable assets across the country earlier this year. Power plants ELCEN Bucureşti, Electrocentrale Mintia and Electrocentrale Paroşeni were transferred under the Economy Ministry directly and, together with other assets, will create Grup Electrocentrale. The remaining part of the company will go under voluntary liquidation in the first part of September, the Government announced earlier in June.

editor@romania-insider.com