In a press release, the company said 6 million euros will be allocated for severance payments to employees.
The layoffs will affect around 1,200 workers in LTG Cargo, the group's freight transportation subsidiary, some 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 said earlier in the year that it could lose 150 million euros in revenue 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 about 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's sanctions on Russian coal and Poland's refusal to buy it will result in a loss of 2.5 million tons of coal and 12 million euros in revenue for LTG.
The railway group will lose 1.4 million tons of freight and 17 million euros in revenue because 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 draft revised 2022 budget, approved by the Cabinet, earmarks 155 million euros in additional funding for LTG.