The state-owned passenger railways company CFR Calatori will axe over a 1,000 jobs in March this year. The measure follows the agreement between the Romanian Government and the International Monetary Fund, the European Commission and the World Bank. Laid off employees will receive six months redundancy pay.

The government also agreed to close down railways that cannot be sold off via tenders and enter public – private partnership for CFR's retail areas.

CFR will not be the only state company to lay off staff this year. State postal service Posta Romana will make 600 redundancies by the end of March and close down 135 post offices in the country, as agreed with the IMF.

CFR Calatori posted losses of EUR 29.5 million in the first half of 2011, 70 percent more than the same period in 2010. Posta Romana reduced losses to some EUR 4.3 million last year, from EUR 28 million the year before.

editor@romania-insider.com

(photo source: CFR)