Report: UP to cut 750 jobs by mid-Septermber

The Omaha-based Class I railroad is eliminating 500 manager jobs and 250 railroad workers in a greater attempt to save up to $400 million a year in costs, according to multiple media sources.    Union Pacific Corp. (UP) will reduce its workforce by roughly 500 management jobs and 250 railroad workers by mid-September, according to a Reuters report.
   The Omaha, Neb.-based Class I railroad has been implementing broader cost-cutting methods in an effort to cut out between $350 million to $400 million this year. The layoffs represent about 8 percent of its management force and will mostly affect workers in the company’s home base in Omaha.
   By cutting salaried employees, the company hopes to reduce annual costs by $110 million. However, putting the plan into effect will cost about $90 million, including $15 million for severance pay plus pension benefits and other expenses, said local news source Omaha World Herald.
   “Union Pacific for some time has leveraged employee attrition and technology to reduce general and administrative costs,” Chief Executive Officer Lance Fritz said in a statement. “Unfortunately, attrition alone will not keep pace with our need and ability to reduce these costs.”
  Union Pacific shares went up about 1 percent Wednesday after the job cut announcement was made, closing at about $106 a share. The shares have risen about 15 percent in the past year, outpacing the gains in the broader stock market, said the Omaha World Herald.