LDz Cargo, the freight subsidiary of Latvian Railways (Latvijas dzelzceļš), plans to lay off 300 employees across Latvia, the company confirmed to LETA.
As of June this year, LDz Cargo employed 1,037 people. The collective redundancy process is scheduled to begin on 1 August, with the workforce expected to be reduced by 300 employees over the following three months.
The company said the exact distribution of affected employees across departments and cities is still being determined. Employees will be informed before any figures are made public, making it inappropriate to disclose location-specific numbers at this stage.
LDz Cargo stressed that it does not plan to cease operations in Daugavpils or elsewhere in Latvia.
Instead, it will continue operating while adapting its workforce and operations to the current volume of freight transport and related services.
The layoffs are driven by significant changes in the rail freight market. According to the company, freight volumes have been affected in recent years by the geopolitical situation, international sanctions, declining market demand, and higher Russian railway tariffs on export and transit cargo bound for Latvia, which came into effect on 1 June.
LDz Cargo acknowledged that the redundancies represent a socially sensitive and difficult process, particularly in regions where the company has historically been a major employer. The collective dismissal procedure will be carried out in accordance with Latvian law, with each affected employee receiving individual consultations regarding termination conditions, compensation, employment guarantees and the next steps.
Latvian Television’s Panorāma programme reported on Tuesday that nearly 300 jobs could be lost in Daugavpils following the closure or downsizing of two companies. Alongside LDz Cargo’s layoffs, international digital services company Concentrix is also ending its operations in the city.
LDz Cargo said the exact number of employees to be laid off in Daugavpils is still being finalised, but current estimates suggest that around 150 jobs could be affected there.
Earlier reports showed that LDz Cargo’s turnover in the first quarter of 2026 fell by 13.9% year-on-year to €17.1 million, while losses increased by 23.8% to €2.33 million.
For the full year 2025, the company’s turnover declined by 23.2% to €77.1 million, and it posted a €5.35 million loss, compared with a profit the previous year.
As part of a restructuring process completed in October last year, LDz Cargo absorbed two Latvian Railways subsidiaries — LDz Rolling Stock Service and LDz Logistics.
The Latvian Railways Group also includes LatRailNet, which is responsible for railway infrastructure charging and capacity allocation, and the security company LDz Security.
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