Romania’s state owned railway freight company CFR Marfa will start the dismissal process for over 2,000 employees next week, due to the company’s unfavorable financial situation, according to transport minister Dan Sova.

“The number of layoffs was established last year to 2,500 people, and it was supposed to be done in February. It wasn’t done. […] Unfortunately, without these layoffs in August, we remain without funds to pay salaries. So this is a very big problem and it has to be solved very quickly,” said the minister, quoted by Mediafax.

He added that the number of dismissals will be under 2,500 as 200 of the employees retired in the meantime. Also, those who will leave, will receive compensatory wages for up to 24 months.

This announcement comes after last week Sova fired the company’s board.

Last year the company posted losses of some EUR 50 million. The Government’s attempt to privatize the company last year failed.

Irina Popescu, irina.popescu@romania-insider.com