Lithuanian Railways, LTG, said on Thursday that the state-owned group plans to lay off about 9,000 of its more than 2 employees, with about a quarter of management personnel at various levels ready to leave.
The company said in a press release that it will set aside 6m euros for severance payments to employees.
The planned layoffs will affect approximately 1.200 workers at the group's freight transport subsidiary LTG Cargo, approximately 500 at infrastructure subsidiary LTG Infra, and approximately 300 at LTG. The group currently has approximately 9.200 employees in total.
According to the press release, both LTG and the Employment Service will provide assistance to redundant workers.
The company previously said it could lose around 26,5 million euros in revenue this year as freight volumes are forecast to halve from last year to around 150 million tons.
LTG lost about 61 million tons in annual freight due to EU and US sanctions against Belarus' potash giant Belaruskali, which will reduce its annual revenue by 11 million euros.
The railway company will lose another 2,6 million tons of freight and 12,8 million euros in revenue due to EU sanctions against the owner of Lithuanian phosphate fertilizer producer Lifosa.
EU sanctions on Russian coal and Poland's refusal to buy it will result in 2,5 million tons of coal shipments and 12 million euros in lost revenue for LTG.
The railway group will lose another 1,4 million tons of freight and 17 million euros in revenue as Belarus bans the transit of oil and petroleum products and fertilizers from Lithuania. Ninety-five percent of these shipments were destined for Ukraine.
Lithuania's revised draft 2022 budget, approved by the Cabinet, provides additional financing of 155m euros for LTG.
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