BUSINESS

ELTA cost-cutting plan includes up to 750 layoffs for this year

VANGELIS MANDRAVELIS

TAGS: Finance

The rapid plan by the state asset utilization hyperfund (HCAP) to make Hellenic Post (ELTA) sustainable provides for cost reductions and an increase in revenues, including the layoff of up to 10 percent of its workers before the end of this year.

Since there is little chance of a comprehensive and efficient plan to streamline the state mail corporation, HCAP and ELTA’s management are implementing measures that will at least keep the company going for now.

The cost reductions will require staff cuts and the termination of lossmaking activities. The target set for personnel departures this year is 8 to 10 percent of 7,600 ELTA employees, including contract workers and staff leased from third companies.

Therefore, by the end of the year, ELTA will have laid off at least 700 employees, of whom 250 have already agreed to leave. Now the company is targeting another 450-500 workers who either qualify for retirement or for whom ELTA could acquire those rights at a small cost.

ELTA union sources say plans also include the closure of units and the end of certain activities: Such a move would concern the distribution centers at Larissa and Athens International Airport, whose combined operational costs come to 2 million euros per year. While operations at the Larissa center will be terminated, operations at the the airport center will be drastically reduced.

ELTA is continuing with post office closures across Greece. The strategy of the new management, appointed by the hyperfund, is for a large part of the mail to be transferred to public locations that are controlled by private parties, such as hotels, or which are of public interest, such as municipal offices. Although this process is currently moving slowly, it is expected to speed up in the future.
 

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