One third of Prospectiuni’s staff to be laid off

“I am referring to personnel categories, such as professions that are no longer necessary, based on current technology.  We are talking about the personnel in the bureaucratic apparatus, and in the mechanics workshops. There will be a total of 520 employees,” Tender told Business Standard.

Gehrig Schultz, the firm’s Chief Executive Officer, recently told Business Standard that Prospectiuni will undergo a restructuring program, externalize non-core activities, and reduce the number of employees, to cut costs by up to one fifth.
Prospectiuni’s General Manager indicated that about 1,000 of the total 1,400 employees are involved in core activities, and most of the others will be reassigned.
Tender estimated that the company will register some €50 million in net sales in 2009, compared to €33.8 mln posted in 2008. Last year, the company’s business dropped 39 percent, to RON 124.6 mln (€33.8 mln) from RON 203 mln (€60.7 mln), after its main client, Petrom, cut its exploration investments substantially. The net profit registered in 2008 was 18 times lower year-on-year, at RON 2.97 mln (€0.8 mln).