Romanian flag carrier Tarom will make redundant 700 of its current employment of 1,492 and close 11 offices abroad, according to the restructuring plan the company has sent to the European Commission.

The company had 1,753 employees in June 2020, down from over 2,500 in 2009.

Tarom will implement the restructuring plan in two years.

The number of management positions was already slashed from 192 in June 2020 to 130 currently, and the restructuring plan will bring the figure down to 50%, according to local Adevarul.

Other key measures included in the restructuring program envisage giving up a significant part of the space leased from the Bucharest National Airports Company (CNAB). The staff that carried out their activity at the airport were relocated to a building owned by Tarom. The result was a reduction in expenses of EUR 440,000 per year.

Separately, the company has started restructuring the staff in external agencies along with the closure of non-performing agencies located in Austria, France, Germany, Greece, Israel, Italy, the Netherlands, the United Kingdom, Spain, Turkey, and Hungary. It will complete the process in May 2021. The respective agencies' services will be taken over by Tarom's internal structures or will be operated online.

In February 2020, the European Commission approved a EUR 36.7 mln rescue loan that the Romanian Government granted to Tarom. In August 2020, the EC also approved EUR 19.3 mln worth of state guarantees granted to Tarom to help the company continue its activity amid the pandemic.

andrei@romania-insider.com

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