EMCC European Monitoring Centre on Change

LTG Cargo

Company/Organisation:
LTG Cargo

Geographic Location

Country: Lithuania
Region: Lietuva
Location of affected unit(s): Vilnius, Kaunas, Klaipeda, Siauliai, Radviliskis

Company

Sector: Transportation / storage
Transportation and storage
49.20 - Freight rail transport
Number Employed: 2740
Group: LTG Group

Employment Effects

Announcement Date: 28-04-2022
Planned Job Reductions min: 1200
Type of Restructuring: Internal restructuring
Employment Effect Start: 28-04-2022
Direct Dismissals: 1200

Additional Information

Lithuanian freight transportation company LTG Cargo - a subsidiary of the state-owned railway company Lietuvos Gelezinkeliai- is to dismiss around 1,200 employees in different Lithuanian regions (mainly Vilnius, Kaunas, Klaipeda, Siauliai, Radviliskis). Lietuvos Gelezinkeliai is currently undergoing a restructuring process since the company is set to lose around €150 million in revenue in 2022, because of the decrease in cargo volumes due to the EU and US sanctions on Russia and Belarus following the war in Ukraine.

Moreover, in January 2022 the Lithuanian government decided that Lietuvos Gelezinkeliai had to terminate its contract with the producer of potash fertilizers Belaruskali, because it clashed with national security interests. Furthermore, the state-owned railway company is set to lose another €12.8 million in revenue due to EU sanctions on the owner of Lithuania's phosphate fertilizer producer Lifosa.

The company consulted trade unions when planning redundancies. Together with the Employment Service, Lietuvos Gelezinkeliai has planned an employee assistance package for the dismissed employees. According to the management, around €6 million will be allocated for severance payments to the dismissed employees from different subsidiary companies of Lietuvos Gelezinkeliai.

LTG Cargo is the largest freight and logistics services company in the Baltic region. It provides services to freight markets in Belarus, Russia, Middle Asia, and China. Currently, LTG Cargo employs 2,740 employees in Lithuania.

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