PKN Orlen hopes to cut its annual costs by zł. 800 million

Thanks to this, starting from 2005, the company hopes to save zł. 800 million annually. Some 10% of this amount will come from reductions in labor costs. "Cost cutting has a key role in helping improve Orlen's market position," said Paweł Poręba from the concern's press office. "The competition is becoming more aggressive and to maintain our status we have to continuously modify our price offer as well as reduce operational costs," added Poręba. In the near future, Orlen may even have to lay off as many as 500 of its employees. Those who opt for early retirement could receive a severance package of zł. 33,000, but they will have to accept the firm's offer by next year. (Gazeta Wyborcza, Jan. 17-18, p. 30). A.Z.