Norfolk Southern says it has plans for job cuts by the end of this year. In a statement Wednesday, the Norfolk-based railroad company said its profits slid more than 25 percent in the fourth quarter of last year. The railroad says it will cut about 1,200 jobs this year, and at least 800 more by 2020. There are also plans to reduce overtime costs and improve efficiency by upgrading its locomotive fleet. The railroad continues to deal with the effects of a declining coal industry, while trying to fend off a takeover bid from rival Canadian Pacific.
Norfolk Southern Corporation (NYSE: NSC) (“the Company”) (“Norfolk Southern”) today announced further details of its strategic plan designed to streamline operations and drive profitability and growth. The Company’s projected expense reduction and disciplined cost control initiatives are in the categories of compensation and benefits, purchased services and rents, materials, and fuel. The Company expects to achieve annual productivity savings of more than $650 million per year by 2020, growing from an initial $130 million in 2016. With this plan, Norfolk Southern expects to improve consistency, reliability, and availability, resulting in a faster, lower cost, and more profitable railroad. The Company has already begun implementing the plan and expects associated net benefits to begin appearing in Norfolk Southern’s financial results beginning in the first half of 2016. READ MORE