Norfolk Southern Corp. announced it would cut 2,000 jobs and downsize its rail lines. The company reached this decision after its profit dropped 29% in the final quarter of 2015.
The job cuts are part of Norfolk Southern’s cost-reduction plan. To achieve cost savings, Norfolk will reduce its overall head count by about 6.7%, focusing on areas affected by lower coal traffic, and cut its overtime to half its 2015 level. A company spokesperson said its workforce totaled about 30,000.
The company said it would consolidate its operating regions to two from three and halt or reduce operations in several hump or secondary yards in 2016. Norfolk Southern will dispose of or downgrade 1,500 miles of its secondary lines by 2020, including 1,000 miles in 2016, and reroute traffic onto higher-density lines.
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