Magyar Telekom considers subletting headquarters as
COVID-19 keeps workers away
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[October 14, 2020] By
Gergely Szakacs
BUDAPEST (Reuters) - Locked into a 15-year
lease agreement, Magyar Telekom <MTEL.BU> is considering subletting some
of its new headquarters, one of several options under review as the
coronavirus pandemic upends long-term plans for Hungary's largest office
building.
The Deutsche Telekom <DTEGn.DE> unit, one of Hungary's biggest companies
which employs more than 7,000 people, had spent just over a year working
in the state-of-the-art office complex on the outskirts of Budapest.
When the first wave of the pandemic hit and Hungary went into lockdown,
the 58,000 square-metre building was closed. After a short reopening,
most employees were told to work from home again from September as
COVID-19 cases in Hungary surged.
Of 5,500 employees normally working in the building, only 150-200 were
on site under strict hygiene regulations early this week.
"Our management has decided that when normal business resumes, 40% of
our employees will be working from home," Corporate Communications
Director Istvan Kutas said in the empty offices, where most hallway
lights were out.
"An average employee will work two days per week from home," he said.
"There will be people who never work from home, but some will be doing
so permanently."
As of Wednesday, Hungary had reported 40,782 coronavirus cases with
1,023 deaths. The daily COVID-19 death toll on Tuesday hit a record 28.
The company, which launched its commercial 5G service in April with
employees working remotely, is exploring ways to utilise some vacant
office space, as renegotiating its long-term lease contract with
property developer Wing is not an option.
Magyar Telekom did not say how much it pays for the lease, which
commercial real estate sector sources say could cost between 14 to 18
euros per square metre a month, bringing its annual cost to around
10-12.5 million euros.
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An employee works at the Magyar Telekom HQ during the outbreak of
the coronavirus disease (COVID-19), in Budapest, Hungary, October
12, 2020. REUTERS/Bernadett Szabo
Both companies declined to comment on details of the contract.
"We are looking at several options, including inviting some of our close partner
companies into our headquarters, as well as moving employees in from other
offices and selling those properties," Kutas said.
He declined to give further details about plans. It was unclear when staff could
return to the building, which boasts three underground parking floors, a pond
and a rooftop jogging track.
Kutas said the company spent half a billion forints ($1.64 million) on
protecting its facilities from COVID this year, including more frequent cleaning
and coating some surfaces with a lasting disinfectant.
Magyar Telekom expects to incur costs worth hundreds of millions of forints as
it needs to provide employees with masks and other protective gear.
Agnes Sziget, who works in Magyar Telekom's human resources department, said she
had not felt an impact on her productivity while working from home, but she
missed the office atmosphere.
"Virtual sessions can never replace face-to-face meetings," she said. "I miss my
colleagues, our interactions and shared laughter the most."
(Reporting by Gergely Szakacs and Krisztina Fenyo; Editing by Mike Collett-White)
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