By the end of this year, Prague City Hall will lay off 7% of its approximately 2,300 employees, about 160 people. Another 3% will be cut in 2022.
The layoffs are considered a last-resort option by the city, which faces a financial crisis brought on by the new coronavirus pandemic.
The office expects to save up to CZK 180 million per year. The Prague deputies are still discussing the document approved by the council.
Mr. Hřib said that the layoffs are related to the loss of income caused by the COVID-19 pandemic and the state tax package.
In May, Mayor Hřib said that the reduction should be related to improving internal processes, which will simplify the implementation of common plans through digitization.
According to the document approved by the councilors, there is now a 30-day deadline when measures are taken to reduce jobs and when everything is discussed with the unions.
After the expiration of the specified period, the mayor’s office will begin specific layoffs of the relevant employees in connection with staff reduction. The dismissed employees will be paid severance pay, which for some will reach seven salaries.
The organizational structure of Prague City Hall, including the names of the organizational units and the names of positions of department heads, is set by the organizational rules.
The basic organizational units are departments, which are further divided into individual units. Secretariats of the members of Prague City Council are special organizational units. For the performance and security of certain activities, departments can be integrated into higher organizational units.
