CSX reorganizes management structure
CSX Corp. said it would eliminate 200 supervisory positions during the next six months as part of a management restructuring designed to streamline decision-making, reduce costs and improve service.
The Jacksonville, Fla.-based company, which owns one of two large rail networks on the U.S. East Coast, said the move would cost between $60 million to $80 million in short-term outplacement and benefit expenses for displaced employees. The company said it would begin to realize savings from the lay-offs by the middle of next year, bringing its non-union workforce down to 800 employees.
'Despite tremendous successes in growing our revenue over the past three years, I am not satisfied with our efforts to control costs and improve productivity. The initiative announced today will result in broad changes in the way we do business,' said Michael Ward, chairman and president of CSX, in a statement.
CSX reported an operating loss of $16 million for intermodal and rail operations in the third quarter, reflecting an accounting change to cover asbestos liability claims and settlement over the sale of container assets in 1999. Excluding the change, income for surface transportation was $213 million, down from $227 million during the third quarter of 2002, due to service interruptions that decreased network efficiency.