Nearly 300 people to lose jobs in Daugavpils due to two companies
Two companies in Daugavpils – LDZ Cargo and Concentrix – will lay off almost 300 workers combined, which the mayor calls a tragedy.
Nearly 300 people in Daugavpils will lose their jobs in the near future. State railway freight operator "LDZ Cargo" and international digital services company "Concentrix" have announced significant workforce reductions.
Staff cuts at LDZ Cargo
"LDZ Cargo" will begin collective layoffs on August 1 of this year, with plans to dismiss more than 150 employees. The company cites the geopolitical situation, sanctions, and a decline in cargo volumes – down 18% in the first quarter. The decision was made with awareness of the social sensitivity, especially in regions where the company has historically been a major employer.
Concentrix leaves Daugavpils
"Concentrix" (formerly "WebHelp") will completely cease operations in Daugavpils on October 1, resulting in the loss of more than 100 jobs. The company entered the city in early 2021 with support from LIAA and employed an average of 350–400 people. The lease agreement with Daugavpils University ends this year and will not be renewed. Management confirmed the closure but provided no further comment.
Reactions and context
Daugavpils Mayor Andrejs Elksniņš called the situation a tragedy, criticizing state regional policy and foreign investor attitudes. Economist Pēteris Strautiņš noted that Daugavpils is one of two cities most affected by the decline in transit (the other being Ventspils). He also highlighted that the IT sector faces challenges from AI development, which could automate tasks and reduce staff. Long-term compensation for lost jobs would require new investments, but these will not materialize quickly.
In May, 2,480 people were registered as unemployed in Daugavpils, a number expected to rise. The State Employment Agency declined to comment on collective layoff notices, citing commercial confidentiality.
