Lithuanian Railways (LTG), the country’s state-owned railway company, is planning to lay off around 2,000 employees until the end of the year as a result of the EU sanctions imposed on Russia and Belarus in the wake of the war in Ukraine.
LTG has earmarked around 6 million euros for the staff redundancy payments, the company said in a press release on April 28.
According to LTG, it is currently implementing a plan to adapt to the changed business environment as a result of the loss of the Russian and Belarusian markets. The plan aims to improve operational efficiency, reduce costs, and diversify and expand into new markets, particularly Western Europe.
It is estimated that due to sanctions imposed on Russia and Belarus, LTG Cargo, Lithuanian Railways’ rail freight company, will transport 26.5 million tons of cargo this year, a drop of around 50% compared to a year before.
The significant drop in freight volumes will result in a loss of around 150 million euros in revenue for the LTG Group.
LTG has designed an employee-assistance package to help the staff affected by the changes, the company said. It is cooperating with the Employment Service to provide information on the labour market situation, available vacancies and retraining opportunities.
The LTG group includes LTG Cargo, LTG Infra, which operates Lithuania’s railway network, passenger transportation company LTG Link, Gelezinkelio Tiesimo Centras (Railway Construction Centre) and other subsidiaries.
The LTG group currently employs around 8,000 people. (LRT/Business World Magazine)
