Railways Company in Latvia to Dismiss 300 Workers
In a recent development, Latvijas Dzelzceļš (LDz), the Latvian Railways company, has announced plans to outsource its cleaning services in an attempt to improve efficiency and reduce costs.
According to the latest reports, the total turnover of LDz Group in 2023 was EUR 263.529 million, marking a 3.4% increase compared to the previous year. However, despite this growth, the company suffered a loss of EUR 3.231 million in 2023.
The decision to outsource cleaning services was reached following an assessment that concluded the move could reduce LDz's costs while maintaining a high quality of service. This assessment covered the cleaning process of railway infrastructure premises and passenger platforms.
LDz, as the manager of the railway infrastructure in public use, has submitted a collective redundancy notice to the State Employment Agency, relevant municipalities, and the Latvian Railway and Transport Workers' Union. The decision affects 298 LDz cleaning staff, who have been informed of the process.
In early 2024, a public tender for the cleaning of railway infrastructure premises and territory was launched. The results of this tender have been announced, but no specific information about them has been made public.
As of mid-2025, no new information about the cleaning process, assessment, tender results, redundancies, or affected employees has been provided. For the latest details, official LDz communications or Latvian transport sector news sources would be the best references.
It is worth noting that the Group's holding company's main function is the maintenance, renewal, and development of the railway infrastructure for passenger and freight transport. This decision to outsource cleaning services is part of a larger strategy to optimise operations and improve LDz's financial performance.
- The European Union (EU) and various business entities have shown interest in the public tender launched by LDz to outsource the cleaning of its railway infrastructure and premises, recognizing the potential benefits for the transport industry and the opportunity to collaborate on infrastructure development.
- To ensure the smooth transition of cleaning operations, LDz has been in discussions with the finance department to secure adequate funding for the procurement of new equipment and the training of the incoming cleaning staff, an essential step in the outsourcing process.
- With a renewed focus on improving efficiency and reducing costs, the industry is closely monitoring the changes carried out by LDz, as this demonstrates the importance of innovative solutions in modernizing infrastructure and adapting to shifting business demands.
