The Jacksonville, Fla.-based Class I railroad started the process of laying off around 1,000 employees yesterday, according to a report from local NBC/ABC affiliate First Coast News.
Source: Rob Wilson / Shutterstock
The majority of the 1,000 management layoffs are expected to take place at CSX’s Jacksonville, Fla. headquarters.
Jacksonville, Fla.-based Class I railroad CSX Corp. has begun the process of eliminating around 1,000 management positions, according to a report from local NBC/ABC affiliate First Coast News.
The majority of the cuts are expected to take place at the company’s Jacksonville headquarters, where there are more than 2,500 management employees.
The layoffs coincided with the company’s announcement it has named former Canadian National and Canadian Pacific Chief Executive E. Hunter Harrison as its next CEO.
Although the job cuts were announced prior to Harrison’s hiring, they are unlikely to stop here.
Widely credited for the dramatic turnarounds at CN and CP, Harrison is known throughout the railroad industry as a strong proponent of cutting costs to increase operating margins and boost profitability. In order to do that, however, he will likely have to continue to reduce CSX’s overall workforce of more than 35,000 employees.
It’s another unfortunate example of the fact that what’s best for a company doesn’t always coincide with what’s best for its employees.
“I had numerous years with the company and clearly they were not loyal to me,” one employee that did not want to be identified reportedly told First Coast News.
“It’s not going to be an easy job hunt trying to find something that mimics what I was currently doing, that I enjoyed and was good at and paid for,” said Paul Young, another recently laid-off CSX worker that had been with the company for 14 years.
CSX said previously it will provide “enhanced” severance pay, pension benefits and outplacement services to impacted workers, and also plans to implement a voluntary separation program.
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