Romania Takes Axe to Postal Service

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Some 3,650 postal workers face redundance in Romania, starting from September, as the state-owned postal service is trimmed ahead of privatisation.

Romania is to cut around 11 per cent of the postal company workforce, starting from next week, to reduce costs, it was announced on Tuesday.

“Some 2,392 employers have opted for voluntary redundancy, while another 1,258 jobs have to be cut following an internal evaluation. Our aim is to restructure the company in order to make it efficient,” added the company in a press release.

The state-owned Posta Romana is the holder of the largest network of postal service distribution offices in Romania.

In 2011, it reported over 43.1 million euro in losses, 50.1 per cent more than in the previous year, according to the Finance Ministry.

With plans for to privatise the company underway, the government is seeking to make Posta Romana attractive for potential investors.

A 51-per-cent stake in the postal service is up for grabs and companies can participate individually or as a consortium.

Entry to the bid requires proof of financial resources for a cash capital contribution of at least 150 million euro.

Since January 2010, the number of jobs in the Romanian public sector has fallen by 180,000 as part of a drive to meet the terms of the IMF and EU loan of 20 billion euro loan.