MOL Management Overhaul Not Aimed To Lay Off Staff

By Veronika Gulyas

BUDAPEST--An ongoing management overhaul at refiner MOL Nyrt. (MOL.BU), Hungary's largest company by revenue, isn't aimed at cutting head count, the company's spokesman told Dow Jones Newswires Tuesday.

"The aim is not to lay off staff," Domokos Szollar said, "but to adjust to the firm's growing international presence."

The company is to set up a 500-strong international management base in Hungary's capital, Budapest, separating Hungarian and international operations. The firm launched an international recruitment campaign Tuesday to find the most eligible staff for this center, Mr. Szollar added.

The company also plans to give more freedom to the management of local flagship arms, Croatia's INA d.d.(IINFJ), Italy's Italiana Energia e Servizi and Slovakia's Slovnaft a.s. (1SLN01AE.BS), the spokesman said.

The changes aren't expected to cost much and savings are as yet unknown. The number of employees cannot change during the overhaul--effective as of Oct. 1, Mr. Szollar said.

MOL generated net profit of 73.7 billion Hungarian forints ($321.1 million) in the first quarter 2012, down 20% compared to the same period of the previous year.

MOL traded up 0.7% or HUF110 at HUF16,550 at 0847 GMT.

Write to Veronika Gulyas at [e-mail]

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