BUDAPEST--Hungarian energy group MOL Nyrt. (MOL.BU) will reach a final decision on a streamlining program that will cut 12% of its headcount at the end of October, company spokesman Domokos Szollar said Saturday.

MOL will make redundant 700 employees under an extensive modernization and optimalization scheme that is altogether expected to save the firm up to $550 million.

Mr. Szollar said that the final decision on the measure will be reached after consultations with the labor unions involved. He added that the move affects MOL's operations in Hungary and Slovakia with no changes planned in the company's other countries of operation. The move will equally affect blue collar and white collar workers.

MOL expects the financial results of the layoff plan to be realized early next year.

Mr. Szollar reaffirmed MOL's earlier announced plan of investing around 300 billion forints ($1.4 billion) in Hungary in the next three years and create up to 5,000 jobs for the economy.

He declined to comment on a news report that MOL would be looking to buy a 26% stake in Slovenian peer Petrol d.d. (PETG.LJ).

Write to Gergo Racz at gergo.racz@dowjones.com