Union Pacific is reducing their workforce. The company announced they will reduce staff by 475 people during the 4th quarter. An additional 200 contract employees will also be cut.
The employees were notified today and that the cuts will be spread across the entire system.
The following information was released by Union Pacific Railroad:
Union Pacific also announced several organizational changes that support operating a safe, reliable and efficient railroad. Those include:
Consolidating the Operating Department from three regions to two. The organization will consist of the Northern Region and the Southern Region.
Elimination of five service units as part of the overall operating consolidation with work being folded into the remaining service units. The eliminated service units are Denver, Livonia, St. Louis, Sunset and Twin Cities.
Centralizing regional Engineering to form a single Engineering organization focused on driving network wide strategies to increase construction, inspection and maintenance efficiencies.
Transferring the Customer Care and Support function from Marketing and Sales to Operating. While the current structure is a strong conduit between UP's customers and the Operating teams in the field, this realignment will streamline two-way communications with customers and lead to faster service resolutions.
Selma Farm, UP’s business, conference and hospitality property located about 4t minutes south of St. Louis will close. The company acquired Selma Farm as part of the 1986 Missouri Pacific merger.
The company announced a workforce reduction of approximately 475 will occur in the fourth quarter. In addition, approximately 200 contract positions will be eliminated.The impacted positions are in various locations across the UP system. This is the first of what likely will be additional workforce reduction initiatives through 2020.
“Workforce reductions are extremely difficult decisions to make because we recognize the impact they have on families, friends and co-workers,” said Chairman Lance Fritz. “We are taking steps today to ensure Union Pacific remains a strong, competitive and vibrant company. These steps are part of reducing our general and administrative support structure by roughly 30 percent by 2020. We also will need to drive efficiencies in all other parts of the railroad."
The organizational changes support UP’s G55+0 initiative of achieving a 60 percent operating ratio by the end of 2020 on the way toward a 55 operating ratio with zero injuries.