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.
Transportation / Storage Land, Water And Air Transportation Land Transport And Transport Via Pipelines 49.2 - Freight rail transport
1,500 jobs Number of planned job losses
Announcement Date
16 January 2020
Employment effect (start)
1 January 2020
Foreseen end date
1 January 2021
Description
Latvijas dzelzceļš (LDz), largest rail cargo company in Latvia, announced the dismissal of 1,500 employees by the end of 2020. The chairman of the company stated that negative trends within the cargo transportation industry, and the necessity to significantly increase the efficiency of the company, call for a reduction of operations' costs.
The dismissal is set to take place in several steps. According to the notice given by the company to the State Employment agency, 949 employees will be dismissed by the end of June, mainly in Riga, Jelgava and Daugavpils. The restructuring will affect both railway employees as well as administrative staff - accountants, secretaries, and office managers. The State Employment agency has already flagged that there are 2,357 vacancies in the professions affected by the redundancies so affected workers might be able to find another employment soon.
The Latvian Railway and Transport Industry Trade Union has agreed with Latvijas dzelzceļš management that the requirements laid down in the general agreement will be fulfilled. The union emphasises that it is important that the dismissal is in accordance with labour law and the requirements of the general agreement.
As of 1 January 2020, Latvijas dzelzceļš had 6,265 employees. The whole group (LDz Group) including various subsidiaries had 9,950 employees.
Sources
16 January 2020: Public broadcasting of Latvia (eng.lsm.lv)
16 January 2020: Public broadcasting of Latvia (www.lsm.lv)
16 January 2020: Public broadcasting of Latvia (www.lsm.lv)
Citation
Eurofound (2020), Latvijas Dzelzceļš, Internal restructuring in Latvia, factsheet number 99658, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/99658.
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