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"150 employees have been laid off so far, and they have received about EUR 100,000 in compensations," said Kovalenko.

Kovalenko did not name the total number of workers that could be laid off.

If KVV Liepajas metalurgs ceases production completely, it will not hurt the state, said Prime Minister Laimdota Straujuma (Unity) after a government meeting Tuesday.

As reported, KVV Liepajas metalurgs has been forced to cut its production volumes at the plant's steel melting facility, as the actual costs prevent the company from competing with similar metallurgical companies in other countries. It was also said that the company is laying off 15% of its staff.

Straujuma said that the Economy Ministry and Finance Ministry are trying to find solutions to limit the high mandatory procurement component (MPC) for electricity, thus supporting KVV Liepajas metalurgs and other high-capacity companies.

Asked about further actions in case KVV Liepajas metalurgs keeps laying off employees, the prime minister said that it will not hurt the state, adding that there are no signs that the company could cease production completely or lay off the entire staff.