Daugavpils braces for job losses as 300 workers face layoffs at two companies

Daugavpils faces a significant employment crisis as two companies announce substantial layoffs, collectively impacting nearly 300 individuals. The city's mayor has labeled the situation a tragedy, highlighting the severe consequences for the local economy.

The first wave of job losses comes from "LDZ Cargo," a subsidiary of Latvian Railways. The company confirmed it will begin a collective redundancy process in 2026, with staff reductions starting August 1. Over 150 employees are expected to be affected. "LDZ Cargo" attributes the decision to a shrinking cargo volume, which fell 18% in the first quarter of this year, exacerbated by the geopolitical situation and sanctions.

Adding to the city's woes, the international digital services company "Concentrix" will completely halt its operations in Daugavpils on October 1. This closure will result in over 100 employees losing their jobs. The company, previously known as "WebHelp," only established its Daugavpils branch in early 2021 with support from the Investment and Development Agency of Latvia. Despite seeking new employees as recently as March, the lease agreement with Daugavpils University is reportedly not being renewed.

Daugavpils Mayor Andrejs Elksniņš criticized the layoffs, viewing them as a reflection of the state's regional policies. He stated that "LDZ Cargo's" situation stems from the dismantling of the transport sector in Latgale over years, while "Concentrix's" departure signals foreign companies' stance on investments in the region.

Economists note that the scale of job losses is significant, particularly as they affect export-oriented sectors. The National Employment Agency has declined to comment on whether collective redundancy applications have been received, citing commercial secrecy, but the impact on Daugavpils' unemployment rate is expected to be substantial.