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Monday 17.02.2020 | Name days: Konstance, Donats
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Employee reduction at Latvian Railway started at the end of 2019

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LDz, lay-offs, plans, optimizationLatvian Railway (LDz) had commenced reassessment of its functions and operations in the second half of 2019. This is why the reduction of the number of employees commenced gradually at the end of 2019, as reported by LDz representative Ella Pētermane.

She explains there are multiple reasons for the reduction of the number of employees. One of them is the decline of freights observed in 2019 and outlooks that do not suggest these volumes may increase significantly soon. When compared to 2018, the freight volume decline in 2019 was close to 16%.

As noted by the company’s representative, because of global economic and political processes observed last year, the price of fossil fuels had declined on global markets, which resulted in fewer business deals and less freight for LDz. The latest outlooks do not suggest prices of those fuels may increase significantly in the near future.

Pētermane notes it is also important to keep in minds climate conditions – winter in Europe is not all that cold, which means lower demand for coal, which is one of the main fuels used for heating.

Since autumn 2019, LDz has been reviewing technological processes. The company has outlined the necessary activities to ensure efficiency of economic operations, stabilize the company and ensure basic functions – maintenance of railway infrastructure in accordance with standards. This is why the company has decided to lay off about 1 500 employees by the end of the year.

Pētermane notes assessment of these functions and processes started in the second half of 2019.

When asked in which areas it is planned to lay off employees, Pētermane explained in the first stage of lay-off administrative workers will be the first to go. In parallel to that, LDz continues assessing operations and technical functions, which will be followed by the next decisions about possible internal reformations to help reduce costs and increase operational efficiency.

Pētermane says information about future steps will be provided both State Employment Agency and the media once available.

Read also: Appropriate jobs promised for laid-off LDz workers

As previously reported, LDz plans to lay off approximately 1 500 employees – 24% of the total number of employees.

LDz Concern consists of six subsidiaries – LatRailNet, LDz Cargo, LDz Infrastructure, LDz Rolling Stock Service, LDz Security and LDz Logistics.


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