CSX has cut 109 operations management jobs as part of a broader reorganization of its engineering jobs, part of continued efforts to reshape its workforce and improve operating efficiencies.
A spokesman for the Jacksonville, Fla., railroad confirmed the job cuts in an email to FreightWaves. The changes were first announced in the spring and are designed to develop a more effective operating structure and to better align field support with the operational needs of the railroad.
The restructuring is intended to maintain the capabilities required to safely operate and maintain the network, and to meet customer needs, the spokesperson said.
The latest cuts follow another round of management layoffs in January when CSX cut 166 positions, or about 5 percent of its non-union workforce at the time.
Other options or severance for affected employees
Of those affected, 58 were offered new positions within CSX’s operations, the company said, while 51 were offered severance packages.
Seventy-five percent of those offered severance have union seniority and may qualify to return to craft positions. The company still has vacancies in some areas of the network where opportunities are still available.
The spokesperson recognized the impact of the decisions on employees and their families and said CSX is working to support those affected as they make the transition.
Management changes with earnings release
CSX’s workforce reductions are coming as the company is set to report its third-quarter earnings after the close of markets.
The railroad is expected to report $3.96 billion in revenues for the current quarter, according to Zacks’ consensus estimate. That would be up about 10.3% from the prior-year quarter.
Earnings per share are estimated at $0.53, an increase of about 20.5% over the adjusted $0.44 a year ago.
The restructuring is also coming as the company is undergoing a senior leadership change. Two current executives will take on the responsibilities of CSX Chief Operating Officer Mike Cory, who has announced plans to retire.
CSX is taking another step to change its management structure while keeping its railroad network and customer service capabilities through a mix of layoffs, organizational and leadership changes.
