KANSAS CITY SOUTHERN TO CUT JOBS, SALARIES
Kansas City Southern Industries said Tuesday it will cut about 170 jobs, or about 6 percent of its work force, will implement a voluntary and temporary annual salary reduction for middle and senior management, and will suspend some benefits for management employees.
KCS's senior vice presidents have agreed to a 7-percent reduction in salaries and Michael R. Haverty, president, chairman and chief executive officer, will reduce his annual salary by 15 percent.
“Kansas City Southern is not immune from the economic slowdown that is underway and we, like many others, must realize cost savings now in order to keep our company competitive,” Haverty said.
While KCS's capital program for maintaining its rail system will continue, the company will put on hold the implementation of a major project to upgrade and modernize its computer system, MCS.
Other major U.S. Class I railroads have announced similar cost-reduction programs in recent months.