Latvijas Dzelzcels to lay-off almost 700 employees by end of year

RIGA - Latvijas Dzelzcels (Latvian Railways, LDz) national rail company plans to cut 684 jobs in mass layoffs by the end of this year, Latvian Television reported last night.

The purpose of redundancies is to reduce costs.

Latvian Television points out that in the last three years the number of employees in the LDz Group has decreased from more than 10,000 to about 7,000. In August and October of this year, the State Employment Agency announced the dismissal of another 684 people.

LDz did not agree to an interview with Latvian Television, but indicated in the written reply to the program that it is reducing costs in order to be able to maintain the company's infrastructure and work more efficiently. The redundancies will affect both administrative and support staff in Riga and other regions of Latvia.

According to the program, the Railway Union and the Transport Industry Trade Union is also involved in the dismissal, which believes that the company's decision is generally justified. Minister of Transport Talis Linkaits (New Conservative Party) also supports the lay-offs and believes that the costs of LDz should be further reduced.

The program also indicates that Riga International Airport has shown interest in the possible employment of the laid off railway employees, where there are currently 83 vacancies, but by the end of the year the number of vacancies could increase to 150.

Latvijas Dzelzcels is a state-owned railway company. Latvijas Dzelzcels group comprises the parent company, Latvijas Dzelcels, and six subsidiaries: LatRailNet, LDz Cargo, LDz Infrastruktura, LDz Ritosa Sastava Serviss, LDz Apsardze, and LDz Logistika.