Liepajas Metalurgs to cut 1,500 jobs

Up to 1,500 workers at one of Latvia's biggest companies will be laid off this month, reports LETA.

Officials at Liepajas Metalurgs, a metallurgical company, made the announcement on Wednesday, Nov. 13.

It follows after an insolvency case was launched against the financially troubled company.

''No more than 300 essential employees are expected to remain employed at the company in order to make sure that the company's equipment and other essential operations are kept in running order,'' Haralds Velmers, a legal protection administrator said. 

Released workers will receive assistance so that they could submit applications to receive compensation form the salary guarantee fund, added Velmers.

They will also be able to receive unemployment benefits from the State Social Insurance Agency.

The Liepaja Court  launched insolvency process against the financially-troubled metallurgical company on Nov. 12.

The court decided to halt Liepajas Metalurgs legal protection process and launch an insolvency process against the company. 

If Liepajas Metalurgs is declared insolvent, it will be placed under Velmers' supervision, eventually leading to a deed of sale in six months following the court's ruling.