Podgorica municipal companies face layoffs and restructuring

Stefan Ćulafić, a DPS official in the Capital City Assembly, reports that several municipal companies in Podgorica are undergoing job systematization and position optimization. These measures are intended to mitigate the financial impact of implementing the ‘Euro model’ starting January 1 next year.

Directors of these companies have indicated that significant additional funds will be required to cover salaries, with some large enterprises facing annual increases of up to 4.5 million euros. Ćulafić noted that the current financial strain is exacerbated by political hiring and increased budget expenditures for contract work since 2022.

To maintain financial stability, it is anticipated that these companies will need to increase service prices and reduce their workforce. Ćulafić previously stated that approximately one in three of the 1,500 employees might not receive the planned salary increase under the new model.