The number of layoffs in Lithuania has tripled in the first months of the year, with group redundancies also rising, as industry struggles and technological changes reshape the labour market, officials and business representatives said.
About one-third of job cuts have occurred in the metal industry, while demand has also declined for information technology and other high-skilled workers, according to data from the country’s employment service.
The labour market shift is partly driven by automation and artificial intelligence, which are reducing the need for entry-level roles while increasing demand for more complex skills.
For some companies, the shift is visible inside the office itself. At Danske Bank’s service centre in Vilnius, not all employees even have desks, as hybrid work and restructuring reshape the workplace. The bank recently announced plans to cut 114 positions while reorganizing teams.
“Artificial intelligence is already actively reshaping the demand for competencies and will continue to do so,” said Indrė Sakalauskienė of Danske Bank’s service centre.
The bank recently announced plans to cut 114 positions, though some employees may be reassigned to new roles. Sakalauskienė said the changes are part of ongoing restructuring rather than a direct effort to reduce staff.
Employment officials say layoffs are most pronounced in manufacturing. Giedrė Sinkevičė, deputy director of Lithuania’s Employment Service, noted a sharp rise in group layoffs in metal production companies, calling it a concerning signal for the sector.
Manufacturing firms reported plans to lay off more than 500 workers in the first three months of the year, compared with 144 in the information and communications sector, 114 in administrative services and 108 in construction.
Vidmantas Janulevičius, president of the Lithuanian Confederation of Industrialists, warned that up to 30,000 workers could leave low-value industrial sectors such as engineering, wood processing and metalworking over the next one to two years if conditions do not improve.
He cited rising wages outpacing productivity, shrinking export markets and increased global competition, particularly from Asian industries, as key pressures on Lithuanian and broader European manufacturing.
“America is closing down, investing in its own industry, and the European Union is left aside,” he said. “Lithuania is a supply chain for Germany which is going through a rough time.”
Among the largest recent layoffs, metal production company Ryterna Modul plans to cut about 130 jobs as it shifts focus to higher-value projects in Northern and Western Europe.
The company said the decision was a strategic response to changing market conditions and not directly linked to artificial intelligence.
Despite the layoffs, demand for skilled workers such as engineers remains relatively strong, highlighting a mismatch in the labour market, officials said.
Rising energy prices are adding further strain on industry, prompting businesses to call for urgent government support measures.
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