Magyar Telekom considers subletting HQ as COVID-19 keeps workers away
14/10/2020 11:30
* Large new headquarters mostly empty as COVID-19 lockdowns
bite
* Magyar Telekom locked into 15-year lease, considers
subletting
* Costs rise due to COVID-proofing offices, facilities
By Gergely Szakacs
BUDAPEST, Oct 14 (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.
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."
($1 = 304 forints)
(Reporting by Gergely Szakacs and Krisztina Fenyo; Editing by
Mike Collett-White)
((gergely.szakacs@reuters.com ; https://twitter.com/szakacsg ;
+36 1 882 3606 ;
https://www.reuters.com/journalists/gergely-szakacs))