Budapest Brand Faces Mass Layoffs Amid Funding Cuts

The news in Hungarian

Translation

The Budapest brand is laying off 31 employees and its director, Csaba Faix, is leaving as the city has reduced funding. This decision significantly impacts the organisation of tourism and cultural events. Some events are being cancelled, but the Budapest Card remains. There is a debate about how the financial resources are being utilised in the city.

Exercise: Text comprehension

Question 1: How many employees are being laid off from the Budapest brand?

31 employees are being laid off.

Question 2: What is the reason for the director Faix Csaba leaving his position?

He is leaving because the city reduced the brand's funding.

Exercise: Vocabulary

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▌10/01/2025

In a significant organisational shake-up, the Budapest Brand, the city's acclaimed marketing company, has announced the dismissal of 31 employees and the imminent departure of its CEO Faix Csaba. This move, spurred by funding cuts, marks a crucial blow to the company that has been pivotal in handling Budapest's tourism, cultural, and city marketing initiatives.

The layoffs come as a direct consequence of the Budapest City Council's decision to withdraw financial support from the company. Initially spearheaded by prominent figure Vitézy Dávid, the budgetary amendment saw widespread backing among councillors, which has led to a near-total halt in the company's marketing activities.

Among the affected programmes are city-defining events such as the Budapesti Tavaszi Fesztivál and celebrations for the city's 150th anniversary, including the Budapest Nagyregény and the iconic Lánchíd Festival. Despite these accolades, the extensive budget cuts have necessitated the cancellation or temporary suspension of most of the company's event planning operations.

Budapest Brand Faces Mass Layoffs Amid Funding Cuts (Illustration)

While the company retains some of its functions, particularly those associated with the Budapest Card, a large-scale restructuring looms. Faix Csaba, who stepped into his role in 2020, will stay on temporarily to oversee the completion of ongoing projects and the execution of the redundancy process. His impending departure leaves an uncertain future for the brand, with discussions of potential consolidation into other city departments already underway.

The financial squeeze has rekindled debates about city priorities with Vitézy pointing out that recent years have seen more spending on marketing rather than infrastructure repairs, such as roads and tram lines. He maintains that the reallocation of the funds is a citywide necessity. This sentiment was echoed by the mayor, Karácsony Gergely, who suggested the budget reduction was a collective fiscal compromise.

In contrast, Faix lamented the budgetary decisions in a heartfelt social media post, underscoring the importance of cultural events as communal binding agents, not merely as financial liabilities. He noted the brand's achievements across its tenure, highlighted by numerous awards for marketing campaigns, and expressed gratitude for his team’s dedication.

The unfolding of these events has attracted considerable public and political attention, with both media and stakeholders keenly observing how the city will negotiate the integration of former brand employees within its municipal ecosystem. While the budget cuts have solidified, the discussion on the city's fiscal strategy remains active, pointing towards ongoing adjustments in Budapest's cultural and marketing spheres.

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