CFM restructures workforce to tackle financial crisis
Moldovan Railways (CFM) is undergoing a restructuring process aimed at reducing costs, which entails several unavoidable but unpopular measures.
Interim General Director Serghei Cotelnic made this statement in an interview with Teleradio-Moldova, in response to questions about the expected layoffs among retired employees still working within the company.
"We are implementing a series of internal measures to streamline our operations so we can adapt to the current realities in the transportation sector," stated the CFM head.
According to Cotelnic, the management has two main objectives: optimizing operations—necessarily involving cost-cutting—and gradually increasing revenues.
He clarified that, as part of the restructuring, "certain activities are being phased out of the operational process," which means that some employees who are not directly involved in freight transport or preparation are being removed from the workflow.
"In some cases, we are merging job roles or combining specialties," Cotelnic explained. "Without this type of streamlining and cost reduction, Moldovan Railways simply cannot move forward—especially given that we currently operate no more than two trains per day."
He also noted that approximately 1,000 of CFM’s nearly 5,700 employees have already reached retirement age. A dedicated commission has been established within the company to oversee workforce restructuring. Cotelnic stated that the commission is "reviewing every job description and professional role individually."
"We are enforcing unpopular measures because, quite simply, there is no alternative," the CFM director stressed.
He added that the administration’s top priority is to eliminate wage arrears.
"Practically all daily earnings are directed toward settling wage arrears. Around 90% of our income is allocated to paying salaries—between 1.5 and 2 million lei (from ~€77,000 to ~€100,000). The remaining 10% goes to electricity and tax payments," Cotelnic specified.
Currently, salary debt has been reduced from 190 million lei to 188 million lei (from ~€9,700,000 to ~€9,500,000). To achieve this, the company has even suspended payments to some suppliers who had previously provided essential parts and rolling stock.
Cotelnic emphasized the importance of government support, noting that CFM received two allocations of 250 tonnes of diesel fuel from the state reserve. "As a result, we are not currently purchasing any diesel," he added.
Employees have recently started receiving back pay for the month of September. To cover these outstanding wages, CFM has once again put carriages and locomotives up for auction.
According to official figures, by the end of January this year, CFM owed more than 156 million lei in back wages to 4,997 employees. These debts accumulated between August and December 2024. The company’s leadership hopes that proceeds from the auctioned assets will at least partially cover the outstanding salaries.
Translation by Iurie Tataru
