Daugavpils has been severely shaken by mass layoffs affecting nearly 300 people in two major companies. City Mayor Andrejs Elksniņš has described these events as a tragedy, pointing to the downturn in the transport sector and the caution of foreign investors. The state-owned enterprise "LDZ Cargo" plans to reduce its workforce by more than 150 employees starting August 1 due to the geopolitical situation and declining cargo volumes. Simultaneously, the international company "Concentrix" will close its branch on October 1, resulting in more than 100 job losses. Economist Mārtiņš Āboliņš emphasizes that the problem is even deeper, as jobs are being lost in export industries—a sector characteristic of the city, which has been heavily impacted by the reduction in transit volumes. In May, the unemployment rate in the city reached six percent, and the situation could worsen further due to the planned reorganization and closure of Grīva prison at the end of the year.