The Jacksonville, Fla.-based railway said workforce reductions at 16 lower volume mechanical facilities are designed to save money because there is not enough work in all areas of its network to keep repairmen busy.
More cost-cutting is underway at CSX Corp. as the freight railroad deals with declining box car volumes and profits, primarily due to the slump in coal and other commodities.
The Jacksonville, Fla.-based company on Friday said it is paring operations at 16 lower volume mechanical facilities throughout its network. The streamlining is designed to match workers with the amount of needed repair work. The changes will eliminate 116 mechanical positions, but some employees will be given opportunities to fill positions in other higher-demand areas of CSX’s network.
The railroad said inspections and maintenance performance will be unaffected and that trains will continue to operate as normal.
CSX posted a 2 percent profit gain in 2015, but revenues fell 13 percent in the fourth quarter on a year-over-year basis, helping to pull net earnings down 5 percent to $466 million. An increase in base rates offset volume declines throughout the year.
Last month, CSX also began consolidating some regional administrative offices in the Appalachian and Mid-Atlantic coal regions. Previously, the railroad reduced train operations in Erwin, Tenn., and closed its mechanical shop in Corbin, Ky.
CSX streamlines work at mechanical shops
