Union Pacific announced Wednesday that they would be slashing hundreds of jobs.
The railroad giant says they will cut 500 management positions and 250 non-management positions by mid-September.The company has not announced exactly which jobs will be eliminated. The job cuts will hit Omaha the hardest, but will affect locations across the United States.
Union Pacific CEO Lance Fritz says the cuts must be made to cut costs. "Union Pacific for some time has leveraged employee attrition and technology to reduce general and administrative costs. Unfortunately, attrition alone will not keep pace with our need and ability to reduce these costs."
The 500 management jobs being cut makes up about about eight percent of Union Pacific's managerial positions.
Mayor Jean Stothert responded to the announcement in a statement.
"Union Pacific notified me early this morning of the decision to reduce its workforce. It is always difficult to make decisions that impact employees and their families. Union Pacific values its Omaha roots and the employees who contribute so much to the company and our community. I have been assured the company will provide severance packages and other resources to assist the employees who will be affected."