Romanian Rail Company Axes Third of Staff

Romania's state-run rail freight carrier, CFR Marfa, has laid off around 2,296 employees in order to cut costs.

The process of shedding about a third of the company workforce started in July and will be completed by the end of December, when the final 200 workers are to be made redundant.

Officials say firing people was inevitable. The employees made redundant have received between 12 and 24 severance payments worth up to 1,625 lei per month (some 370 euro).

Jobs have been cut at CFR Marfa following a restructuring plan agreed with the International Monetary Fund, IMF.

Jobs are being lost not only in freight. A sharp fall in the number of people traveling by train and lack of money to improve the lines have resulted in cuts to the number of railway workers overall.

Almost half of the network has been, or will be, closed. A government memorandum issued in June on "increasing efficiency in the country's railway system" includes such drastic measures as eliminating 4,000km of line, reducing the network to just 6,200km.

The line closures will relieve the National Railway Company, CFR, of the burden of expensive investments and repairs. CFR will use the extra money to update those parts of the rail network that handle the most passenger and cargo traffic.

With around 10,777 km of railways, Romania has one of the largest rail networks in Europe, but much of the network requires urgent modernisation. Trains run at low speeds due to outdated track and signalling problems. A few lines are being modernised with EU funds.