Employment, Latvia, Railways, Transport

International Internet Magazine. Baltic States news & analytics Sunday, 05.07.2020, 11:19

Latvijas Dzelzcels railway company plans to fire about 1,500 employees by year end

BC, Riga, 16.01.2020.Print version
Latvijas Dzezlcels state-owned railway company plans to fire about 1,500 employees by the end of this year, LETA learned from the company' spokeswoman Ella Petermane.

She said that year 2019 had been full of turbulences for the concern and the whole Latvian transport and transit sector – a significant reduction of incoming and outgoing cargo volumes due to a decline of fossil supplies prices in the global financial markets and lower transportation of these cargos respectively, as well as the region’s economic and political situation. 

“In order to ensure contemporary and more customer-friendly model of operations, as well as to reduce the company’s expenses and increase its efficiency, since the summer of 2019, Latvijas Dzelzcels is actively revising all functions and organizational processes, and has considerably cut the company’s expenses," said Maris Kleinbergs, the board chairman Latvijas Dzelzcels.

 He said that, considering the current and projected trends in international cargo transportation, Latvijas Dzelzcels is revising all technological processes in order to efficiently ensure its core function – maintenance of rail transport infrastructure in line with all Latvian and international safety and quality standards.

Besides, considering the negative trends in cargo transportation and the necessity to significantly improve efficiency of Latvijas Dzelzcels business operations, stabilizing the company, along with a considerably cut of expenses for ensuring the company’s core activities, Latvijas Dzelzcels by the end of 2020 plans to terminate labor contracts with about 1,500 employees.

“Undoubtedly, reduction of the number of employees is a painful decision in life of every company, still, I am confident that we should make this step for LDz to be able to renew its financial stability and in the future – profitability and competitiveness in the regional and international markets,” he said.

Reduction of the number of employees will be conducted in several stages – today Latvija Dzelzcels sent the respective information to the State Employment Agency.

“We are doing everything possible so that the reduction of the number of employees would be transparent and friendly to employees, and this process will be started with optimization of the number of employees working in the company's administration,” said Kleinbergs.

Along with revision of processes and optimization of costs, Latvijas Dzelzcels actively continues work to attract new cooperation partners and diversify target markets.

On January 1, 2020, Latvijas Dzelzcels employed 6,265 people, while the number of employees in Latvijas Dzelzcels concern reached 9,950 early this year.

Latvijas Dzelzcels is a fully state-owned enterprise managing public railway infrastructure. It is the leading company of the LDz Group, which includes six subsidiaries.

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