In a press release, the company said 6 million euros will be allocated for severance payments to employees.
The laid offs will affect around 1,200 workers in LTG Cargo, the group's freight transportation subsidiary, about 500 in LTG Infra, the infrastructure subsidiary, and some 300 in LTG. The group has around 9,200 employees in total.
According to the press release, LTG and the Employment Service will provide assistance to the redundant workers.
The company has said earlier that it may lose 150 million euros in revenue this year, as freight volumes are forecast to halve, compared to last year, to around 26.5 million tons.
LTG lost 11 million tons of annual freight because of EU and US sanctions against Belarus' potash giant Belaruskali, which will trim its annual revenue by 61 million euro.
The railway company is expected to lose 2.6 million tons of freight and 12.8 million euros in revenue due to EU sanctions on the owner of Lithuania's phosphate fertilizer producer Lifosa.
The EU will lose 2.5 million tons of coal shipments and 12 million euros in revenue for LTG because of the EU's sanctions on Russian coal and Poland's refusal to buy it.
The railway group will lose 1.4 million tons of freight and 17 million euros in revenue as a result of the ban on the transit of oil and oil products from Lithuania. Ninety-five percent of these shipments were destined for Ukraine.
Lithuania's budget for 2022, approved by the Cabinet, earmarks 155 million euros in additional funding for LTG.