The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Public Administration / Defence 84 - Public administration and defence; compulsory social security 84.1 - Administration of the State and the economic, social and environmental policies of the community 84.11 - General public administration activities
295 jobs Number of planned job losses
Announcement Date
24 October 2025
Employment effect (start)
24 October 2025
Foreseen end date
1 January 2026
Description
Latvia’s State Revenue Service (Valsts ieņēmumu dienests, VID) will reduce staffing significantly in 2026 as part of a major budget-cutting programme. The total number of eliminated positions at VID will reach 393, of which 295 are occupied posts (the remainder are vacant positions), meaning that approximately 295 employees will lose their jobs. In parallel, the Tax and Customs Police (NMP) will be separated from VID as an independent institution with 382 employees, bringing the total reduction in VID’s organisational size to 775 positions when both changes are combined. One of the largest staffing impact will be in the Customs Administration, where 105 positions will be eliminated, including vacant positions, which are around a half of the number.
The downsizing is driven by a 10% reduction in VID’s budget, which will fall to €121.2 million in 2026 from €156.8 million in 2024. According to VID management, cost reductions will affect salaries, IT spending, operational expenses, and infrastructure, while greater reliance will be placed on automation, digitalisation, artificial intelligence, and risk-based supervision.
Šmite-Roķe, the director general of the VID, stated that the reduction in staff numbers in the tax area will be addressed through process digitalisation, consolidation of functions and organisational restructuring, automation of processes, targeted risk-based supervision, and by providing the “consult first” service in digital form as well.
At the same time, Šmite-Roķe named the possible risks as a decrease in additionally collected tax revenue, a possible deterioration in service availability, an increase in the shadow economy, employee overload and a lack of motivation, as well as failure to achieve VID’s strategic objectives. Šmite-Roķe said that all identified risks would be monitored and algorithms would be put in place to mitigate them if any of the risks increase significantly.
Sources
24 October 2025: Public Broadcasting of Latvia, lsm.lv (www.lsm.lv)
31 October 2025: Public Broadcasting of Latvia (www.lsm.lv)
Citation
Eurofound (2025), State Revenue Service, Internal restructuring in Latvia, factsheet number 203811, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/203811.
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